Here is the most volatile period in the Asian currency trading - MarketWatch

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There is a fragile spot in the $5.1 trillion currency market: early morning in Asia.

This one- to two-hour period when U.S. traders are heading home— but market hubs in Singapore and Hong Kong aren’t yet fully up and running —has become known to traders as the twilight hour, a time when normally stable currencies can suddenly go haywire.

It happened on Thursday, when the yen USDJPY, -0.93%   surged by 3% against the U.S. DXY, -0.39%  nd 8% against the Turkish lira USDTRY, +1.0778%   in minutes around 6:30 a.m. Hong Kong time, or 5.30 p.m. in New York.

Even with markets in Australia and New Zealand open for business, currency-market volumes are typically the lowest of the global day at this time. The weakest period for trading runs from around 5 a.m. to 6 a.m. in Hong Kong, according to CLS, a provider of settlement services for currencies.

An expanded version of this article appears at WSJ.com

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