Japanese economy shrinks, potential recession, global market meltdown, impact on U.S. Treasury holdings

From Investing.com: 2025-06-24 02:35:00

The Japanese economy shrank by 0.7%, sparking concerns of a technical recession. With over $3 trillion in foreign assets, Japan is a major creditor holding $1 trillion in U.S. Treasuries. However, Japan’s aging population and low fertility rates pose long-term economic challenges. The recent 12.40% drop in Japan’s benchmark index triggered a global market meltdown due to the yen carry trade unwinding. Rising rates in Japan could lead to higher borrowing costs globally and impact U.S. Treasury holdings. The crisis in Japan serves as a warning for global markets and U.S. investors to take proactive steps to protect their financial future.



Read more at Investing.com: The Japan Shock: How the World’s Biggest Creditor Could Impact US Markets