Stock markets in Japan and South Korea rebounded on Tuesday after a mass sell-off on Monday.
Japan's Nikkei-225 on Tuesday closed up over 10 percent and in the meantime, South Korea's KOSPI moved up 3.3 percent. Analysts attribute the rebound to investors reassessing fears of a U.S. slowdown.
In Monday's trading, the Nikkei plunged 12.4 percent, its biggest fall since "Black Monday" in October 1987. South Korea's KOSPI index dived 8.77 percent at the closing bell.
Asked to comment on the Japanese market plunge in an interview Tuesday with China Global Television Network (CGTN), Hong Hao, Chief Economist of GROW Investment Group, pointed out that a stronger yen, which recently reached a 7-month high against the U.S. dollar, is another contributor to the stock rout.
He explained that short-term investors increased selling in stock index futures in line with the yen's appreciation.
"I think the Japanese Yen has been the most important funding currency for carry trade globally. So, I think as a result, the recent rapid appreciation of the Japanese Yen is creating havoc in the financial industry. So, people who borrow Yen at zero interest rate are now facing a slightly high interest rate and also a rapidly appreciating yen. So, I think as a result people have to deconstruct or pay back the Japanese year loans, sell down the assets they hold and also repatriate the money back to Japan and pay down the loan. This process is creating selling pressure on many of the high-flying assets in the past year, for example, the U.S. semiconductor industry. Many of the stocks in this industry have more than doubled," said Hong.
Following the Bank of Japan's announcement of its policy rate hike to 0.25 percent on July 31, the Governor of the Bank of Japan (BOJ) Kazuo Ueda did not rule out the possibility of an additional rate hike within the year, which accelerated yen buying and dollar selling in the forex market.
Japan, South Korea shares rally after massive sell-off
As the Qingming Festival approaches this Friday, various traditional folk activities have been held across China, celebrating the rich cultural heritage of the occasion.
With a 2,500-year history, Qingming Festival, or the Festival of Pure Brightness, observed in early April, uniquely combines ancestral worship with the celebration of spring. Falling on the 15th day after the spring equinox, this ritual-rich observance reflects China's enduring values of ancestral veneration and inspires deep introspection about what gives life meaning.
In Sijia Village, Huayin City, northwest China’s Shaanxi Province, a unique swing festival is held to mark the occasion. Eighteen different types of traditional swings, such as the spinning wheel swing, the Bagua swing reminiscent of a rotating carousel, and the balance swing designed for two people, have attracted many visitors.
Historically, Sijia Village served as a military post guarding the strategic Tongguan pass, a former mountain pass and fortress located south of the confluence of the Wei and Yellow Rivers. The swing tradition in the village has its origins in military training exercises like climbing and river crossing. The local swing culture further developed as regional trade flourished, eventually evolving into the "swing festival" that continues today.
"It's very exciting and tests your skill, endurance, and most importantly, your arm strength. You need to maintain balance," said Qu Xiangyang, a visitor.
In Rudong County, Nantong City, east China's Jiangsu Province, another traditional Qingming activity takes place - kite flying.
Flying kites as a way of making wishes is an age-old Qingming custom in this region. As a result, the Qingming Festival in Nantong is also known as the "Kite Festival."
The local Banyao whistling kite making skills is listed as one of the first national intangible cultural heritage items.
According to a folk culture expert, people traditionally write the names of diseases or misfortunes on paper, attach it to a kite, and release it into the sky. This practice is believed to drive away illness and disaster, while also serving as a way to make wishes.
In south China's Guangdong Province, a large tug-of-war competition is underway in Maoming City. Teams from different towns and streets are competing, attracting many locals to cheer on their teams.
Tug-of-war, which originated during the late Spring and Autumn period (770 BC - 476 BC), became part of Qingming customs during the Tang Dynasty (618-907). Emperor Xuanzong of the Tang Dynasty once organized large-scale tug-of-war competitions for the festival.
"Tug-of-war became very popular in the Tang Dynasty, even emerging as the national sport. It originated in the Jingchu region and later spread across the country. In ancient Lingnan (Southern China), tug-of-war games were a common tradition. Through these events, people seek to pray for peace, prosperity, and abundant harvests," said Yao Guojun, vice dean of the College of Arts and Law, Guangdong University of Petrochemical Technology.
Traditional folk activities held for Qingming Festival
