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Markets have sold off heavily over recent days, but the Japanese Yen has failed to take advantage.

Normally, when global equities come under pressure, Japan’s currency strengthens as investors rush into traditional safe-haven assets.

But this time, the yen is sliding even as stock markets wobble.

So what’s going on?

Karl Schamotta at Corpay says the currency is acting "uncharacteristically weak, given the worsening risk backdrop."

A big part of the story is geopolitics.

New Prime Minister Sanae Takaichi has taken a far firmer pro-Taiwan stance than her predecessors, and that has triggered unease in Beijing.

Schamotta argues that "tensions with Beijing over newly installed Prime Minister Sanae Takaichi’s support for Taiwan" are weighing on sentiment around Jap

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