Weak yen a double-edged sword, say mkt mavens

The depreciation of the Japanese yen has created ups and downs in China, both promoting outbound tourism and the value of renminbi and Chinese assets while also presenting some problems for Chinese exporters, said industry experts.

Ever since the beginning of the year, the Japanese currency has depreciated by over 10 percent against the US dollar due to wider interest rate gaps between Japan and the United States, rising volatility in the international market and the loose monetary policy adopted in Japan for a very long time. The yen has also depreciated by over 7.5 percent against the renminbi, or yuan currency.

Chinese outbound trips to Japan have been boosted by the cheaper yen. Experts from Trip.com, China's largest online travel agency, said that Japan has been the top tourist destination for Chinese travelers so far this year, largely due to the depreciation of the yen.