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
A promotional video for China Media Group (CMG)'s 2025 Spring Festival Gala has gained widespread attention in Guatemala, Honduras, and Pakistan, offering locals a unique opportunity to experience Chinese culture and generating excitement for the event's upcoming live virtual broadcast.
The Spring Festival Gala, also known as "Chunwan" in Chinese, has been an annual tradition since 1983, airing live on Chinese New Year's Eve.
In Guatemala, the promo video for the 2025 Spring Festival Gala began airing on Sunday at major shopping centers across the capital, Guatemala City. This marks the second consecutive year that the promo has been showcased in the country.
Displayed on large screens both indoors and outdoors, the video captured the attention of shoppers and passersby in busy commercial districts, sparking interest in Chinese culture.
"I think it's great that technology is being used to help us learn more about China through social media," said David Aguilar, a resident. "For those of us interested in Chinese culture, no matter how far away we are, we always seek to stay connected to this rich cultural heritage, especially the traditions that have been passed down through history."
Fabian Lopez, another resident, expressed his excitement about the program: "Through the promos, I've learned how the celebration takes place. The culture is fascinating, and it's wonderful that we can connect via the internet to watch the entire celebration. I'm really looking forward to it and will be sure not to miss any of the broadcast. This year marks the Year of the Snake, if I'm not mistaken, and as for me, I was born in the Year of the Monkey according to the Chinese zodiac."
The video has captured the attention of many who have never watched the program before, with many now eagerly looking forward to the live virtual broadcast of the Gala.
"Honestly, I've never watched the Spring Festival Gala before, but after seeing the promos, it looks absolutely beautiful. It's a great way to learn about Chinese culture through the arts, dance, and even elements of comedy and magic. I think it's wonderful that they share their history through such a spectacular show," shared Alejandro Calderon, another local resident.
David Gallo, another resident, remarked on the impact of cultural exchange: "It's truly impressive to arrive in Guatemala and connect with Chinese culture through the promotional videos. It's a gratifying experience that offers us a fresh perspective on the world from Latin America."
Meanwhile, in neighboring Honduras, the promotional video has been playing continuously in major commercial districts and transportation hubs in Tegucigalpa and San Pedro Sula since Saturday. This marks the second consecutive year it has been displayed in the country.
"My best wishes to China. I hope you have a wonderful year, continue to unite forces, and keep your beautiful culture alive. A big hug," said Yani Paola Gonzalez, a Honduran citizen.
Fellow Honduran Deyanira Romero offered her new year's wishes to the Chinese people: "I wish the people of China a happy new year, filled with love, prosperity, and peace."
In Pakistan, the promotional video has also been featured at several events celebrating the upcoming Spring Festival.
On Saturday, the Pakistan Overseas Chinese Association, along with other local organizations, hosted the China-Pakistan Children's Spring Festival Gala in Islamabad, where the video was shown. The event also celebrated the successful UNESCO heritage listing of the Spring Festival, with hopes for a new chapter in China-Pakistan relations.
"This year, China's Spring Festival has been inscribed on the UNESCO Intangible Cultural Heritage list, turning it into a global celebration. We hope that events like this will help more Pakistani people, especially children, learn about Chinese culture and the Spring Festival, fostering a deeper appreciation for Chinese traditions," said Ma Bin, president of the Pakistan Chinese Education Association and organizer of the children's gala.
In the eastern Pakistani city of Lahore, the CMG Spring Festival Gala promotional video was also displayed at the entrance to the country's only light rail, the Orange Line Metro, attracting passengers to pause and watch.
CMG's Spring Festival Gala promo captivates audiences in Guatemala, Honduras, Pakistan