{"id":72354,"date":"2026-09-28T22:38:11","date_gmt":"2026-09-29T02:38:11","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/japan-finance-minister-signals-vigilance-on-yen-as-shein-profits-plunge\/72354\/"},"modified":"2026-09-28T22:38:11","modified_gmt":"2026-09-29T02:38:11","slug":"japan-finance-minister-signals-vigilance-on-yen-as-shein-profits-plunge","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/japan-finance-minister-signals-vigilance-on-yen-as-shein-profits-plunge\/72354\/","title":{"rendered":"Japan Finance Minister Signals Vigilance on Yen as Shein Profits Plunge"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Japan\u2019s Finance Minister Katayama<\/strong> warned that an <strong>undervalued yen is problematic<\/strong>, signaling potential intervention and closer cooperation with the U.S. Treasury.<\/li>\n<li><strong>Shein shares tumbled 10%<\/strong> following a disastrous quarterly report showing a <strong>67% decline in profit<\/strong>, raising concerns over the fast-fashion giant&#39;s growth trajectory.<\/li>\n<li><strong>South Korea\u2019s Finance Ministry<\/strong> pledged to buy back treasury bonds if yields surge excessively, aiming to stabilize local debt markets.<\/li>\n<li><strong>Tokyo was ranked as the world\u2019s second highest-risk housing bubble market<\/strong>, according to a new report from Kyodo.<\/li>\n<li><strong>Tropical Storm Fay<\/strong> has reformed in the Atlantic, currently positioned 1,380 miles west-southwest of the Azores with <strong>40 mph maximum winds<\/strong>.<\/li>\n<\/ul>\n<h2>Japan Signals Hardline Stance on Yen Weakness<\/h2>\n<p>Japan\u2019s Finance Minister <strong>Satsuki Katayama<\/strong> issued a series of pointed remarks regarding the yen\u2019s current valuation, stating that the government believes an <strong>undervalued yen is problematic<\/strong> for the national economy. Following a call with U.S. Treasury Secretary nominee <strong>Scott Bessent<\/strong>, Katayama reiterated that Tokyo will maintain &quot;close dialogue&quot; with international partners to ensure orderly foreign exchange markets.<\/p>\n<p>Katayama emphasized that while market forces should determine interest rates, the <strong>Takaichi administration<\/strong> is not focused on reflationary policies. The Finance Ministry remains &quot;highly vigilant&quot; and prepared to engage with market participants to curb excessive volatility. Meanwhile, the <strong>40-year Japanese Government Bond (JGB)<\/strong> yield edged up 0.5 basis points to <strong>4.230%<\/strong> as traders weighed the government&#39;s debt management strategy.<\/p>\n<h2>Shein Profits Crater as Retail Sentiment Shifts<\/h2>\n<p>E-commerce giant <strong>Shein<\/strong> saw its stock price collapse by <strong>10%<\/strong> in early trading after the company reported a staggering <strong>67% drop in quarterly profit<\/strong>. The sharp decline has fueled investor anxiety regarding the sustainability of the company&#39;s low-cost business model amid rising logistics costs and increased regulatory scrutiny in global markets.<\/p>\n<p>The sell-off in Shein comes as other Asian market players seek strategic shifts. <strong>Alibaba<\/strong> (<a href=\"\/stock\/BABA\">BABA<\/a>) announced a new partnership with the <strong>Brooklyn Nets<\/strong> to bolster its sports technology ambitions. Conversely, a <strong>US$842 million data centre project<\/strong> in Sydney was scrapped following intense public backlash, highlighting the growing hurdles for large-scale tech infrastructure.<\/p>\n<h2>Regional Market Volatility and Economic Risks<\/h2>\n<p>In Southeast Asia, the <strong>Indonesia benchmark stock index<\/strong> slid by as much as <strong>1.2%<\/strong>, hitting its lowest level since late July. This regional weakness coincided with reports that <strong>China\u2019s hospital workers<\/strong> are facing significant wage cuts due to mounting financial pressures on local governments.<\/p>\n<p>South Korean authorities are also on high alert, with the <strong>South Korea Finance Ministry<\/strong> stating it is keeping a &quot;close watch&quot; on the bond market. The government has committed to <strong>buying back treasury bonds<\/strong> if yields experience an &quot;excessive&quot; surge, seeking to prevent a liquidity crunch.<\/p>\n<h2>Geopolitical and Environmental Developments<\/h2>\n<p>On the geopolitical front, <strong>North Korea<\/strong> has been accused of operating a secret prison within its embassy in Beijing, according to reports from <strong>Yonhap<\/strong>. In the United States, a massive <strong>Pentagon employee database breach<\/strong> has reportedly exposed sensitive information, raising fresh concerns over federal cybersecurity.<\/p>\n<p>In the Atlantic, <strong>Tropical Storm Fay<\/strong> has regained strength. The <strong>National Hurricane Center (NHC)<\/strong> reports the storm is moving with maximum sustained winds of <strong>40 mph<\/strong>. While currently far from land, meteorologists are monitoring its path as it moves west-southwest of the Azores.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Japan\u2019s Finance Minister Katayama warned that an undervalued yen is problematic, signaling potential intervention and closer cooperation with 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