India, July 24 -- Japan has spent close to three decades running interest rates near zero, and for just as long, that cheap yen has quietly funded a huge share of global risk-taking. Traders borrow yen for almost nothing, convert it into dollars or rupees, and park it in higher-yielding assets abroad. It's a trade that works beautifully right up until the currency it's funded in starts moving the wrong way, and that's roughly where things stand today.

What's the news? Japan's Ministry of Finance reported a June trade deficit of 406.9 billion yen, more than three times the roughly 120 billion yen economists had expected. Imports grew 25.4% year-on-year, driven largely by costlier crude oil and LNG, while exports grew a slower 19.3%.

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