The path of yen carry trade liquidation
4 stages of how one BOJ interest rate hike signal spreads to the global market
① BOJ interest rate hike (announced or implemented)
② Sharp rise in yen value, decline in appeal of low-interest loans
③ Carry trade liquidation — yen buying + selling of overseas assets
④ Increased volatility in global stock markets2024.8 Nikkei -12.4% / KOSPI -8.77%, 2025.12 recurrence
⑤ Simultaneous pressure on Asian currencies due to won-yen coupling (correlation coefficient 0.94)