Wednesday, May 22, 2013

Japan's Nikkei Free-Falling, -1143

(UPDATE) It is ugly in Europe, with Germany's DAX down 223 points (2.62%). US stock futures are ugly, too. Dow futures down 159. Ben's Fed has some work to do before the cash market opens.


The stock market in Japan is supposedly disliking the contracting Chinese economy and the US Fed comment about "tapering" down the QE4EVA, but I think it's about another botched day in the JGB (Japanese Government Bond) futures market which was halted (yet again) when the price dropped and yield spiked. 10-year JGB's yield hit 1%, almost triple the yield right before the Bank of Japan intervention in early April.

Nikkei is now minus 940...still 5 minutes to trade.

I wonder if Governor Inose now has second thoughts about advancing the Japan Standard Time. He wouldn't want to start the financial day for the entire world with disaster after disaster in Japanese financial markets, would he?

It is now minus 976, one minute to trade...

...and just ended the day with minus 1,143. That's an intraday swing of 1,459 from the high of 15,942, or over 9% swing.

Now their stock market is catching up with the bond market in terms of extreme volatility.


Anonymous said...

And now the meltdown of Japan itself started.

Anonymous said...

This is the true cost of a huge nuclear meltdown.

It happened to USSR after Chernobyl, which fell three years after the disaster - and should have been a warning to us all to rid ourselves if this insidious technology before it destroyed us.

Instead we chose to think of them as "Stupid Soviets", who were careless in the operation of nuclear power.

And so now the immeasurable cost of this disaster will take it's toll financially - it already has ruined a good portion of the land forever (in human terms). It already has ruined the health and the will of millions of Japanese. It already has ruined the trust in the government. It already has ruined the ocean and the food supply.

So what will Japan devolve into? If you cannot see it, perhaps you are not looking.

Maju said...

That's about 8% collapse in just one day. Which is the official "reasoning" in the media about it? I'm pretty sure that they are not talking about Fukushima's ill effects on the credibility and overall health of the country and its economy (never mind the poor civilian victims), so which is the "official" excuse?

arevamirpal::laprimavera said...

I'm reading the excuses right now, and they are one hilarity after another.

The sell-off is not about "fundamentals" which are solid. Just a nervous investors in a market that rose 80% in a few months, but nothing to worry about, the market is not that high anyway.

And let's blame it on computer trading.

Anonymous said...

Nikkei is back to where it was 10 days ago; is it such a big deal?

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