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Traders Burned by August Meltdown Keep Betting on Japan Stocks

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A year after an epic rebound in the yen upended currency trading and sent shares tumbling from Tokyo to New York, Japan’s stock market has found firmer footing.

It’s taken two major routs and a significant unwinding of the carry trade strategy, used by global investors to borrow heavily in the relatively low-yielding yen to buy other currencies offering higher returns.

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