According to Bloomberg, hedge funds have reduced their positions in Asia following significant sell-offs in the US and Europe. Japan was hit the hardest, while China-based funds cut back on bullish bets.
Asian Markets Under Pressure
Hedge funds moved away from Asian markets on Monday after shedding assets in the US and Europe on Friday. Japan was most vulnerable as funds sought to cover shorts and unload long positions. In emerging markets like China, there was a noticeable reduction in bets on growth.
Global Implications
Amidst the correction in US markets, retail investors are under pressure. The number of accounts on platforms like Fidelity and Robinhood has significantly increased over the past year. Meanwhile, futures contracts for European and US stocks continued to slide, and US Treasuries strengthened. Comments from Bank of Japan's Governor Kazuo Ueda further supported the yen.
Trump's Trade War Escalation
Announced tariffs continue to impact global markets. In response to EU's measures, Trump proposed new trade barriers. Meanwhile, bond and commodity markets are also under renewed pressure, with oil prices falling and gold paring gains.
Amid the uncertainty surrounding trade and currencies, hedge funds continue to adjust their strategies, staying ahead by effectively responding to global market changes.
