On the 5th local time, the Tokyo stock market in Japan experienced another sharp decline. Both the Nikkei 225 index and the TOPIX index triggered circuit breakers, causing trading to be temporarily suspended. The Japanese stock market entered a technical bear market. Earlier, Kelvin Tay, the regional chief investment officer for UBS Global Wealth Management, believed that the only reason for the rapid rise in Japanese stocks in the past two years was the very cheap yen, so entering the Japanese stock market now is like "catching a flying knife." "Once the situation reverses, you must exit, so I believe they are all exiting now," Kelvin Tay said. He pointed out that the yen is an indicator of whether the Japanese stock market is performing well, and as the yen weakens, Japanese stocks will fall, and "unfortunately, Japanese stocks still face greater pressure." He admitted that the partial rise in Japanese stocks is related to the Tokyo Stock Exchange's corporate reform, but the main driving force is still the yen. However, one of the reasons why the yen trend is so important to the Japanese market is related to yen-funded carry trades. When the yen weakens and Japanese interest rates are zero or negative, investors will borrow yen and invest in assets with higher returns. With the US lowering interest rates and Japan raising interest rates, the interest rate differential between the US and Japan is narrowing, reducing the attractiveness of carry trades, and the yen is expected to further rise. Kelvin Tay expects the yen to rise to 143 against the US dollar, but if Japanese insurance companies and pension funds start to repatriate capital, the yen could rise to the 135 level.