Japanese Stocks Halted; Plunge 1500 Points To Close Down 7.3% - Biggest Drop In 26 Months

Tyler Durden's picture

UPDATE 1: They are panicking... BOJ injected 2 trillion yen ($19.4 billion) into the financial system to stem volatility following a circuit breaker in JGB futures trading.

UPDATE 2: Nikkei 225 is now down 1500 points from its highs and down 1150 (over 7%) from yesterday's close

All the time it is just the quadrillion JPY second-largest bond market in the world that is experiencing volatility on an unprecedented scale, the BoJ and her partners in crime are more than willing to 'officially' say "please do not worry." But when the equity market - that barometer of everything good and holy about Abenomics starts to crater, you can bet the excuses will come fast and furious. Today's drop of over 1500 points (over 9%) from the earlier highs is the largest drop for the Nikkei 225 since March 2011. The Nikkei 225 just lost the all-powerful 15,000 level and is suffering another VaR shock with a 6-sigma move today. In fact given the price levels this drop is on par with the post-Lehman moves in 2008. The question now (with US equity futures also fading fast -20 points and JPY crosses getting hammered) is how will the Japanese risk appetite for peripheral European crap hold up with this crimping in their plan as Japanese bonds and stocks dump?

The Nikkei 225 is down 7% (1000 points) from its earlier highs...


High-to-low this is the biggest drop in 26 months...

Close-to-close this is the biggest drop in the Nikkei in over 26 months!!



The Final closing data is a disaster with JPY surging back to 101.50 (carry trades getting baumgartner'd everywhere), stocks down over 7%, and 10Y JGBs swinging from +11bps at the open to -6bps at the close for the second biggest range day in a decade...

Charts: Bloomberg

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Manthong's picture

4 sigma?..  aw pshaw..

Show me some 6 more smegmas and I will be impressed.

Pool Shark's picture




Still waiting for a Triple Lindy...



disabledvet's picture

the foreign money moved in...for the kill. as with gold "they ramped this thing to the moon." goodbye yen. "get the message Mr. Fed Chairman." were it not for "those crazy equity guys" that's exactly what you'd be looking at right now. spreads are blowing out, "Greece times a trillion." oh, and Banzai...you have shamed your people. "take a good hard look at THEM."

I think I need to buy a gun's picture

sometimes a good healthy correction can set us up for the next leg higher, whats 1K? Then maybe we can put another 5K on this summer!!!!!!!!

James_Cole's picture

If this is a healthy correction, God help us all when there's an unhealthy one. 

Meat Hammer's picture

Nikkei down over 1,100 points as of 11:00 PDT

James_Cole's picture

Nikkei down over 1,100 points as of 11:00 PDT

Don't worry cnbc assures me boj has 'unlimited firepower'

Bearwagon's picture

+1 for Zero Wing reference

James_Cole's picture


Pretty scary looking stuff.

Gold looks like it might have a bit of bite in it. The NK probably scared the shit out of a few people. 

malikai's picture

NK's move cut a few people to shreds.

I'll do one on PMs later today. It looks like something big is in the setup.

James_Cole's picture

I thought gold was in for a ramp this week but the Bernanke surprised me (you not as much). Looking forward to what you have, I'd of thought if there's any decent dip there'll be some selling to cover margin. PMs have pressure on both sides. 

Never a dull moment. 

smlbizman's picture

it looks to me that they are just filling gaps.....dont gaps always get filled?

Alexandre Stavisky's picture

Reduced shields in order to EMP the hull to shed all the galactic barnacles.  What's that, cannot restore power?  Uh oh.

Kabushiki tsuiraku wa motto kihonteki kusari o arawasu.  yasu en, kabu taka no michi wa anzen ja nai.

Bearwagon's picture

The DAX and the SMI are heading down and could probably take the Dumb Jones with 'em. US employment data should bring an upward turn. So hurry, if you wanna BTFD and STFR EOD, I'd say. But that's just my two cents ...

malikai's picture

You still have two cents left?

Bearwagon's picture

Imagine ... they are made of gold ...   ;-)

fonzannoon's picture

I am listening to Joe Kernen congratulate Japan on getting to 1% inflation.

smlbizman's picture

its really hard to tell who the biggest pos is on that set ......you can tell how kernen thinks , when you listen to his indoctrinated daughter....they are  as stupid as they appear...

Pool Shark's picture



Currently at new low: 14,926...



The Shootist's picture

Thanks for the "real time". Double-dipping they are.

Dr o love's picture

So sawwy, gwasshoppaw, but those awe not live qwotes.

DeadFred's picture

Put the thing out of it's misery and close early. Then call up Obama for a way to spin it so it really wasn't an early close and if it was I didn't know because I was asleep.

sodbuster's picture

Obama won't know anything- this is BAD stuff. He only knows about GOOD stuff!!

constantine's picture

Clearly this forced selling of Japanese assets was due to hedge fund margin calls on their gold positions... Where's my job as a mainstream analyst?

James_Cole's picture

Wooooooowwww this is ugly! 

Freefall, broke 14700

Gunna need a bigger helicopter!

James_Cole's picture

The cavalry has arrived, phew. Close one. 

Scratch that, back to freefall. Where's the power cable for this thing? Can't they just unplug it?


Scro's picture

Long weekend...bank holiday?

max2205's picture

Fib retrace...wsit for the big one

ultimate warrior's picture

BOJ needs to obviously print MOAAR


suteibu's picture

That's funny.  I like this one, too

Hello Abe

williambanzai7's picture

If you are familiar with Japanese urban style, you will recognise this as being very appropriate. ;-)

suteibu's picture

I own that outfit.  Except for the hat...

...and the goofy expression.

torak's picture

So how does injecting Monopoly money into the system help a damn thing. 

Look out below!

I'm waiting for volicity -- i.e., mass panic.

infiniti's picture

Going long. Who's with me?

Hopium Dealer's picture

MillionDollarBonus, probably.