Market volatility has surged recently, driven by a combination of proposed tariffs from US President Trump and increasing bond yields in Japan. The source notes that investors are reacting to these developments, leading to significant shifts in asset allocations.
Concerns Over Proposed Tariffs
President Trump's proposed tariffs, which range from 10% to 25%, have raised concerns among investors, prompting a retreat from high-risk assets. This uncertainty has particularly impacted sectors such as technology and cryptocurrencies, which are often seen as more vulnerable during times of economic instability.
Impact of Rising Japanese Bond Yields
In addition to the tariffs, rising Japanese bond yields have further exacerbated market fluctuations. As investors reassess their portfolios in light of these changes, a notable selloff has been observed in both tech stocks and digital currencies, reflecting a broader trend of risk aversion in the current financial landscape.
In light of recent market volatility, Sumitomo Mitsui Financial Group has announced plans to increase its holdings in Japanese Government Bonds as yield fluctuations stabilize. For more details, see read more.
