Japanese Markets Close for Silver Week Amid Yen Intervention Fears

The Government of Japan and the Japan Exchange Group closed the Tokyo Stock Exchange, Osaka Exchange, and the government bond market from September 21 to September 23 for the Silver Week holidays. The closures observe Respect for the Aged Day and Autumnal Equinox Day, with normal trading scheduled to resume on September 24.

Market analysts suggest that Japanese authorities may use the resulting thin liquidity in offshore yen trading to intervene and support the currency. This speculation follows a period of significant yen weakness, during which the currency fell more than 2% in a single week to close around 157 per dollar. The decline occurred after the Bank of Japan raised interest rates but failed to provide clear guidance on future hikes.

Precedent for such intervention exists from Golden Week, when Japan spent approximately ¥11.7 trillion to prop up the yen. Observers are monitoring whether the government will repeat this strategy to stabilize the currency while domestic markets remain inactive.