Asia maritime tensions
The ‘currency wars’ are usually a bit more abstract than this. Just as the Japanese look to be finally weakening their stubborn yen and spur some inflation in a stagnant economy, there is a suggestion, just a suggestion mind, that a deliberate plan to scupper, or at least hinder, that plan might be afoot.
Markets in Asia were apparently very skittish earlier today in partdue to fears that earnings could be affected by tensions between Japan and China over the Senkaku/Diaoyu islands. This in turn was no doubt exacerbated by the news that not only are the big four Chinese banks skipping this week’s IMF meeting in Tokyo, but the PBoC governor and the finance minister are also sitting it out, instead sending along their respective deputies. From Bloomberg:
American oil major ExxonMobil has made a “potentially significant” gas discovery off the coast of Vietnam in an area that is also claimed by China, reports the FT. The find brings the bitter territorial dispute over the resource-rich South China Sea back into focus at a time when leaders in both Communist nations have been trying to play down tensions. China has become more vocal about its claims to the South China Sea in recent years, and Chinese vessels have several times tangled with Vietnamese and Japanese ships in contested waters this year.