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 | 4327896 rubearish10
rubearish10's picture

Waddell and Reed where are you??

Mon, 01/13/2014 - 15:06 | 4327919 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

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

Mon, 01/13/2014 - 15:15 | 4327948 rubearish10
rubearish10's picture

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

Mon, 01/13/2014 - 16:31 | 4328214 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 | 4328253 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 | 4328928 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 | 4327907 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 | 4327979 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 for...is it two years now?...that says "danger Will Robinson!" http://www.indexmundi.com/commodities/news/coal/colombia

Mon, 01/13/2014 - 15:28 | 4327995 jcaz
jcaz's picture

He took too many rads......

Mon, 01/13/2014 - 15:05 | 4327915 max2205
max2205's picture

Long aapl short everything else

Mon, 01/13/2014 - 15:06 | 4327917 TruthInSunshine
TruthInSunshine's picture


Mon, 01/13/2014 - 19:56 | 4328922 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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