– Recent global market turmoil not just due to weak US jobs data, but also unwinding of yen carry trades
– Carry trade involves borrowing yen at low interest rates to invest in higher-yielding assets
– Bank of Japan’s surprise rate hike caused yen to appreciate, forcing investors to unwind positions
– Unwinding of carry trades led to global financial crisis in 2008
– Effects felt in India with Japanese FPIs holding significant investments in Indian equities
– Ripple effects seen in U.S. tech stocks with Nasdaq dropping over 8% in August
– Current situation marked by heightened uncertainty and geopolitical tensions, different from 2008 crisis.