Yen Breaks 162 Per Dollar Overnight, Hits 40-Year Low; China's A-Shares Rally 3% as PBOC Doubles Reverse Repos to 600 Billion Yuan

The Chinese yuan strengthened overnight as the yen fell through 162 per dollar for the first time in four decades. In early trading, the ChiNext (tech-focused board) index surged more than 3%, with semiconductor manufacturer Cambricon's market capitalization exceeding one trillion yuan.

The People's Bank of China doubled its overnight reverse repo operation to 600 billion yuan at month-end to smooth short-term funding. ECB sources indicated that easing oil prices have reduced pressure for a July rate hike, with a September increase now seen as more likely.