US Shutdown Shakes Japanese Stocks (Worst Day In 6 Weeks); Rest Of Asia Mixed

Tyler Durden's picture


A US government shutdown, slumping vehicle sales, Aussie trade deficit double what was expected (and building approvals tumbled), Asian growth expectations being cut, and Japan's monetray base is up 46.1% YoY (versus 42.0% exp.)... Japanese stocks are down over 400 points from the US day session highs, falling for the 4th day in a row (down 4.8% from the highs last week) as the third arrow confusion reigns taking the Nikkei 225 back to 3 week lows. The Rupiah (Indonesia) and Baht (Thailand) are weakening (bucking the 3-day weakness in the USD) and Indonesian (+10bps), Aussie, and Kiwi bonds are leaking higher in yield. In general, AsiaPac equities are holding modest gains but Singapore and Japan are taking it on the chin... S&P futures -5 from day-session highs.

Down 4.8% from its highs last week, the Nikkei is getting no help from the US shutdown...


This is the first 4-day losing streak in 2 months...


Also seems like USDJPY is at a precarious place... it seems that now decisions have been made on the sales tax rise and the stimulus offset that investors are fearsome that they won't see any more...



Chart: Bloomberg

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Wed, 10/02/2013 - 00:29 | 4012967 IridiumRebel
IridiumRebel's picture

Dow was up 62 today....fuckit. Shakita ganai!

Wed, 10/02/2013 - 02:35 | 4013052 DJ Happy Ending
DJ Happy Ending's picture

I am hoarding government cheese as a hedge against any market downturn.

Wed, 10/02/2013 - 07:05 | 4013181 GetZeeGold
GetZeeGold's picture



The US market is loving this shutdown stuff......can we make it permanent?


Real sorry Japan is having trouble with it....but you guys are on your own from this point on.

Wed, 10/02/2013 - 00:30 | 4012969 lasvegaspersona
lasvegaspersona's picture

The world economy is like a Prince Rupert drop. You can (seemingly ) smash it with a hammer and it doesn't break. Snap one little piece off the tail and it will explode.

Wed, 10/02/2013 - 00:50 | 4012986 LetThemEatRand
LetThemEatRand's picture

Fitting that the markets are Prince-like.  Machiavelli like Rand advocated for dynastic wealth and muppet slaying.  Who is Lloyd Galtstein?

Wed, 10/02/2013 - 00:50 | 4012989 Rathmullan
Rathmullan's picture

Who wrote that headline? Maria Bartiromo?

Wed, 10/02/2013 - 04:54 | 4013118 achmachat
achmachat's picture

but I bet that the exploding economy does NOT look as mesmerizing and beautiful when filmed with a high speed camera.

Wed, 10/02/2013 - 00:37 | 4012980 maskone909
maskone909's picture

Glad i put on all those leveraged shorts todays market was a gift

Wed, 10/02/2013 - 07:14 | 4013193 GetZeeGold
GetZeeGold's picture



Got pictures of that?

Wed, 10/02/2013 - 08:00 | 4013262 prains
prains's picture

yes a little program called "snag it" would give us all a jpeg screen shot of your "trades" in action

Wed, 10/02/2013 - 01:36 | 4013026 Bobportlandor
Bobportlandor's picture

And this 23,564.900 gal

I was wondering if may was a one off then June came in and now July.


Was Aug and Sept get any worse?

Wed, 10/02/2013 - 02:08 | 4013047 Captchured
Captchured's picture

WOW! Look how efficient our vehicle fleet has gotten since 2008. I thought it was hyperbole when I told my friends that Obama was the second coming of an environmentally friendly Christ. He got elected in 2008 and efficiency got a huge boost in 2008. That simply can't be a coincidence. Cool.

Wed, 10/02/2013 - 01:38 | 4013029 Rick64
Rick64's picture

 A big correction is coming, but after that the market will continue up at a slower pace. This will probably coincide with the gov. shutdown. The big crash everybody is expecting isn't going to happen for yrs.. Probably 2016-2018.  Gold and silver will explode to the upsidebetween now and then. IMO

Wed, 10/02/2013 - 01:43 | 4013034 SpykerSpeed
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Maybe the Japanese misunderstood what a "shutdown" really means - the Panda Webcam is no longer online.

Wed, 10/02/2013 - 02:07 | 4013046 TruthInSunshine
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Paul "When Mars Attacks" Krugman recommends Kuroda-san take Japan's Debt-to-GDP ratio to 800%.


Wed, 10/02/2013 - 02:24 | 4013049 chump666
chump666's picture


Wed, 10/02/2013 - 02:42 | 4013055 akak
akak's picture

Ack ack ACK ackack, ack ack, ack ACKACK ack ack ACK!

Translation: You can't break too many windows!

Wed, 10/02/2013 - 07:09 | 4013186 GetZeeGold
GetZeeGold's picture



Tora! Tora! Tora!

Wed, 10/02/2013 - 03:27 | 4013075 The Burning Planet
The Burning Planet's picture

Like the parent that is oblivious to their child with suicidal ideation: 1) 1/4 of Montana is hooked on OXY. 2) Half of Northern California is stoned. 3) The entire southwestern portion of the United States is devastated by Meth...

and you are just NOW waking up to the fact that there is a problem in this country? The problem isn't financial, I'm sorry to tell you, although there IS a very serious financial cancer working its way through western civilization. The problem is much more insidious and pervasive. See if you can guess what it is.

Wed, 10/02/2013 - 07:15 | 4013195 Racer
Racer's picture

Maize sugar

Wed, 10/02/2013 - 07:54 | 4013250 Global Hunter
Global Hunter's picture

So Northern California is the place to be, Montana and Albuquerque not so much.

Fri, 10/11/2013 - 23:31 | 4047184 The Burning Planet
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If you decide to relocate please note, I would not recommend Clear Lake.

Wed, 10/02/2013 - 04:26 | 4013103 NipponMarketBlog
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With Japanese CPI for August coming in at 0.9%, there is increasing pressure on companies to increase wages, but a recent survey indicated that they are less than likely to do so.

This means more pressure on real wages, and less propensity for consumers to make Abenomics work.



Wed, 10/02/2013 - 04:31 | 4013109 toadold
toadold's picture

I was going to buy a bunch of those US Post Office "forever" stamps as an inflation hedge but considering how fast the US Post Office is sliding into bankruptcy I had my doubts about Fed EX or United Parcel beling willing to redeem them....Heh.

Wed, 10/02/2013 - 06:02 | 4013147 Moe Howard
Moe Howard's picture

You could profit one or two FRNs on every hundred stamps next price hike.

Wed, 10/02/2013 - 05:47 | 4013139 BigSimes
BigSimes's picture

Final blow off at the top?

Wed, 10/02/2013 - 06:17 | 4013156 buzzsaw99
buzzsaw99's picture

If only they can get the nikkei up all will be well. The BOJ should buy moar stawks. [/troll]

Wed, 10/02/2013 - 06:31 | 4013162 nmewn
nmewn's picture

All's well, they got three moar years to fix it...

Wed, 10/02/2013 - 06:57 | 4013180 Non Passaran
Non Passaran's picture

They say that's bullish - a proof that demand for ObamaCare is huuuuge.

Wed, 10/02/2013 - 06:52 | 4013176 Heroic Couplet
Heroic Couplet's picture

Cool. Close Wall Street. 49 states don't have Wall Street. New York state doesn't need it either. Let the people who work on Wall Street find jobs in the real world. A stock market crash around the world is perfect.

Wed, 10/02/2013 - 07:14 | 4013194 Racer
Racer's picture

A 'market' that is affected by reality, WOW, I  am truly shocked and stunned

Wed, 10/02/2013 - 07:59 | 4013259 Its_the_economy...
Its_the_economy_stupid's picture

Nikkei must be operating under the "old " paradigm. Should have been a ramp.

Wed, 10/02/2013 - 09:02 | 4013378 Herdee
Herdee's picture

Just think of "an act of randomness" as being a curve ball hit to left field and into the upper deck.

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