• Steve H. Hanke
    05/04/2016 - 08:00
    Authored by Steve H. Hanke of The Johns Hopkins University. Follow him on Twitter @Steve_Hanke. A few weeks ago, the Monetary Authority of Singapore (MAS) sprang a surprise. It announced that a...

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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Thu, 05/23/2013 - 00:35 | 3590832 Major Major Major
Major Major Major's picture

BTFD!!!

Thu, 05/23/2013 - 00:38 | 3590841 DoChenRollingBearing
DoChenRollingBearing's picture

BTF Gold D!

While you still can...

Thu, 05/23/2013 - 00:39 | 3590844 tsx500
tsx500's picture

GAME ON !

Thu, 05/23/2013 - 00:56 | 3590876 Manthong
Manthong's picture

4 sigma?..  aw pshaw..

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

Thu, 05/23/2013 - 01:05 | 3590896 Pool Shark
Pool Shark's picture

 

 

Yawn.

Still waiting for a Triple Lindy...

 

 

Thu, 05/23/2013 - 01:07 | 3590901 CheapBastard
CheapBastard's picture

uh, oh.....

Thu, 05/23/2013 - 01:18 | 3590918 disabledvet
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."

Thu, 05/23/2013 - 01:41 | 3590965 I think I need ...
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!!!!!!!!

Thu, 05/23/2013 - 01:56 | 3590993 James_Cole
James_Cole's picture

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

Thu, 05/23/2013 - 02:03 | 3591005 Meat Hammer
Meat Hammer's picture

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

Thu, 05/23/2013 - 02:20 | 3591033 James_Cole
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'

Thu, 05/23/2013 - 03:03 | 3591090 lewy14
Thu, 05/23/2013 - 04:15 | 3591141 Bearwagon
Bearwagon's picture

+1 for Zero Wing reference

Thu, 05/23/2013 - 05:25 | 3591192 malikai
malikai's picture

JGBs, EURJPY, USDJPY

Pretty scary looking stuff.

http://blog.quantsig.net/2013/05/23/fear-and-loathing-in-abeonomics/

Thu, 05/23/2013 - 06:05 | 3591223 James_Cole
James_Cole's picture

JGBs, EURJPY, USDJPY

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. 

Thu, 05/23/2013 - 06:14 | 3591229 malikai
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.

Thu, 05/23/2013 - 06:37 | 3591256 James_Cole
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. 

Thu, 05/23/2013 - 06:41 | 3591262 smlbizman
smlbizman's picture

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

Thu, 05/23/2013 - 08:00 | 3591423 Alexandre Stavisky
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.

Thu, 05/23/2013 - 02:20 | 3591034 fourchan
fourchan's picture

buy the dip? 

Thu, 05/23/2013 - 04:57 | 3591166 Bearwagon
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 ...

Thu, 05/23/2013 - 05:33 | 3591200 malikai
malikai's picture

You still have two cents left?

Thu, 05/23/2013 - 08:27 | 3591523 Bearwagon
Bearwagon's picture

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

Thu, 05/23/2013 - 06:15 | 3591231 fonzannoon
fonzannoon's picture

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

Thu, 05/23/2013 - 06:37 | 3591259 smlbizman
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...

Thu, 05/23/2013 - 01:19 | 3590920 Pool Shark
Pool Shark's picture

 

 

Currently at new low: 14,926...

 

 

Thu, 05/23/2013 - 01:21 | 3590924 The Shootist
The Shootist's picture

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

Thu, 05/23/2013 - 01:23 | 3590926 Pool Shark
Pool Shark's picture

 

 

Real time ticker for all the major indices:

http://www.sgxniftydowfutureslive.com/index_files/DOWFUTURES.htm

Thu, 05/23/2013 - 02:13 | 3591022 Dr o love
Dr o love's picture

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

Thu, 05/23/2013 - 01:27 | 3590931 DeadFred
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.

Thu, 05/23/2013 - 02:44 | 3591077 sodbuster
sodbuster's picture

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

Thu, 05/23/2013 - 06:24 | 3591244 constantine
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?

Thu, 05/23/2013 - 01:27 | 3590933 hmmmstrange
hmmmstrange's picture

14813

Thu, 05/23/2013 - 01:37 | 3590949 James_Cole
James_Cole's picture

Wooooooowwww this is ugly! 

Freefall, broke 14700

Gunna need a bigger helicopter!

Thu, 05/23/2013 - 01:40 | 3590962 hmmmstrange
hmmmstrange's picture

just halted!

Thu, 05/23/2013 - 01:42 | 3590969 The Shootist
The Shootist's picture

Pussies. Fuck 'em.

Thu, 05/23/2013 - 02:03 | 3590977 James_Cole
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?

14500.  

Thu, 05/23/2013 - 01:03 | 3590892 Scro
Scro's picture

Long weekend...bank holiday?

Thu, 05/23/2013 - 06:54 | 3591287 max2205
max2205's picture

Fib retrace...wsit for the big one

Thu, 05/23/2013 - 01:44 | 3590974 ultimate warrior
ultimate warrior's picture

BOJ needs to obviously print MOAAR

 

Thu, 05/23/2013 - 02:10 | 3591015 williambanzai7
williambanzai7's picture

THE CRISIS IS OVER 7

Thu, 05/23/2013 - 02:14 | 3591024 suteibu
suteibu's picture

That's funny.  I like this one, too

Hello Abe

Thu, 05/23/2013 - 05:43 | 3591212 williambanzai7
williambanzai7's picture

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

Thu, 05/23/2013 - 08:47 | 3591597 suteibu
suteibu's picture

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

...and the goofy expression.

Thu, 05/23/2013 - 05:01 | 3591168 torak
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.

Thu, 05/23/2013 - 00:35 | 3590833 realtick
realtick's picture

deflating fast

Thu, 05/23/2013 - 00:36 | 3590836 infiniti
infiniti's picture

Going long. Who's with me?

Thu, 05/23/2013 - 00:52 | 3590867 Hopium Dealer
Hopium Dealer's picture

MillionDollarBonus, probably.

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