Japan's Nikkei Average futures have declined by 0.4%, reflecting ongoing market pressures. Concurrently, the Japanese yen has weakened, trading slightly past 150 against the U.S. dollar. Recent developments indicate that the USD/JPY exchange rate has fallen below 148, marking its lowest level since October 2024, following the outcome of Rengo wage negotiations. The yen's depreciation continued as the USD/JPY rate fell below 147.8, and it further extended its decline, reaching 147.39, which represents a 1% drop. Analysts note that a significant carry trade strategy in recent years involved borrowing in yen to invest in U.S. stocks, particularly those related to AI.