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Japanese Stocks Lose All Post-Taper Gains As USDJPY Dives

Tyler Durden's picture


The Nikkei 225 is at its 'cheapest' relative to the Dow Industrials in the last two months as the behcmark Japanese stock index has now lost all of its gains post the US Taper decision in mid-December. With USDJPY breaking back below 103 and the correlation between it and stocks as high as it has ever been, if BAML is right with its sub-100 target for the FX pair, then the Nikkei could be looking at 14,500 (or an 11% tumble from the highs).


Japanese stocks are back below pre-Taper levels... (leaving the NKY the cheapest to the Dow in 2 months)


as the correlation between Japanese stocks and the Yen remains as high as ever...


Charts: Bloomberg


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Mon, 01/13/2014 - 15:01 | Link to Comment rubearish10
rubearish10's picture

Waddell and Reed where are you??

Mon, 01/13/2014 - 15:06 | Link to Comment Vampyroteuthis ...
Vampyroteuthis infernalis's picture

What? Piles of magical debt are not making the Japenese even richer? Never!!

Mon, 01/13/2014 - 15:15 | Link to Comment rubearish10
rubearish10's picture

Nah never, unless they eat, drive around and use elecricity.

Mon, 01/13/2014 - 16:31 | Link to Comment MedTechEntrepreneur
MedTechEntrepreneur's picture

Paging Kyle Bass....""War is the manifestation of simple economic entropy played to its logical conclusion "..

Mon, 01/13/2014 - 16:40 | Link to Comment CClarity
CClarity's picture

Side note - CNBC has stopped streaming Nikkei results while still carrying other Asian bourses . . . Cuz dont want to show any equities going down? Well, never mind, they'll go back to chanting USA USA just in time for the Olympics and flogging their purpose on the silly channel.

Mon, 01/13/2014 - 19:57 | Link to Comment suteibu
suteibu's picture

I noticed that the other day.  In fact, the only reason I switched to CNBC was to check out the Nikkei.  Gone.

Mon, 01/13/2014 - 15:05 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Kuroda-san can't seem to keep Abenomics afloat for longer than 48 hours. How hard is it to digitally print Yen en absolute masse batches, perpetually, anyways?


The electronic printer gives you a "zero cost basis" for conjuring binary Yen, bitchez-Sans!

Mon, 01/13/2014 - 15:24 | Link to Comment disabledvet
disabledvet's picture

this has the ability to impact another island nation. and if Japan has the ability to shut down ALL of its nuclear fleet it two years now?...that says "danger Will Robinson!"

Mon, 01/13/2014 - 15:28 | Link to Comment jcaz
jcaz's picture

He took too many rads......

Mon, 01/13/2014 - 15:05 | Link to Comment max2205
max2205's picture

Long aapl short everything else

Mon, 01/13/2014 - 15:06 | Link to Comment TruthInSunshine
TruthInSunshine's picture


Mon, 01/13/2014 - 19:56 | Link to Comment suteibu
suteibu's picture

I guess the Yakuza needs a fresh group of homeless to work at Fukushima.

On the other hand, they will take a beating on their personal loans to the poor and middle class.  Well...they won't take the beating but there will be a beating involved.

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