FX Action: USD-JPY has posted a three-week low.
FX Action: USD-JPY has posted a three-week low at 111.97, and EUR-JPY and AUD-JPY have both seen one-month lows. Yen outperformance, although relatively moderate, drove the moves amid a backdrop of plunging stock markets, which has seen the Japanese currency pick up safe haven demand. Wall Street saw its worse day in over eight months yesterday, with the S&P 500 closing with a 3.3% loss, and S&P 500 futures have extended lower by a further 1% in overnight trading with Asian markets hit hard. Japan's Nikkei is down 4.4% heading into the Tokyo close while the Shanghai Composite is off by 4.6% in the first hour of trading after the lunch break.