Yen Surge Points to BOJ Rate Hike as Global Markets Rebalance

The yen has surged to its strongest levels since February, breaking calm in global markets. The move is seen as repositioning ahead of an almost certain Bank of Japan interest rate rise next week.

The case for a BOJ rate hike was bolstered by an upgrade to Japan's second-quarter GDP estimates and the biggest yearly rise in its real wages in five years in July.

China's exports rose 25% year-on-year in August, lifting both its global trade surplus and its surplus with the U.S. The surplus in the first eight months of the year reached $805.51 billion, putting the annual number on track to top $1 trillion for the second year.