Japanese Stocks In Freefall - TOPIX Plunges Almost 5% To 4-Month Lows; Nikkei Down 15% In 2014

Tyler Durden's picture

UPDATE: USDJPY has re-tumbled back below 101.00, recoupling with S&P 500 futures from the tried-and-failed attempt to ramp stocks overnight. It seems the short-JPY-driven carry traders have backed away from risk for now, no matter how much the BoJ primes the pump.

Nikkei futures are under 14,000 and down 15% from Dec 31st highs.


Despite the hope-driven exuberance exhibited immediately post the Abe/Kuroda show, the USDJPY-pumping stock-momentum fest has ended - abruptly. Japan's Nikkei 225 has lost all its gains and is now trading below US day-session lows (3-month lows) but it is the broader TOPIX index (more akin to the S&P 500) that is collapsing. Down almost 5% on the day (its biggest drop since the May collapse), the TOPIX is at 4-month lows. The TOPIX Real Estate index just hit a bear-market - down 20% from Dec 31st highs. Japanese sell-side shops are in full panic desparation mode as "suggestions" that a sub-14,000 Nikkei will prompt an acceleration of Japan's QQE money-printing idiocy. This is getting ugly fast.

TOPIX collapses to 4-month lows...

As Bloomberg notes, the sell-side is in full panic mode...

Japan’s central bank will probably boost purchases of ETFs as early as this month if Nikkei 225 drops to about 14,000, Hidenao Miyajima, chief strategist at Parnassus Investment Strategies in Tokyo, says in interview.


But this won't help as the ramp in USDJPY is not helping...


and The TOPIX Real Estate Index is in Bear market territory - down 20% from Dec 31st highs... and 6 month lows...


Charts: Bloomberg

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Stoploss's picture

Boy, that escalated quickly.

THX 1178's picture

*Mr. Burns tenting fingers*


TruthInSunshine's picture

Domo arigato, Krugman-nomics!

economics9698's picture

Adjust the index, problem fixed!!!  /sarc

Never One Roach's picture

Roses are Red,

Violets are Blue,

I sold my stocks,

And so sould you!

Anusocracy's picture

Everything government touches turns to crap.

-Ringo Starr

TruthInSunshine's picture

If we have a 3% to 5% drop tomorrow in the "markets," will Jim "Jam" Cramer come out crying, sobbing, and whining about "where is Bernanke?...where is Yellen?...," or is that some ways off?

What about that bald-headed fuck Hank "Tanks In The Streets" Paulson?

Where's Tiny Tim Geithner and the usual suspects?

The Shootist's picture

Rant " They don't know what it's like out there. Not a clue! We investors need monetary crack dammit!"

Rick Blaine's picture

...and the final score of today's game is...

-610.66 (-4.18%)

WAY more entertaining than the Super Bowl.

philipat's picture

So, naturally Gold is DOWN. That really makes sense.

GetZeeGold's picture



In case of emergency.....pound gold down.


....and pray.

new game's picture

gold serves as only one barameter; manipulation index(indicator).


mick_richfield's picture

Well those guys were probably at Davos, weren't they?

And the markets started tanking about 12 hours after Davos, didn't they?

So what do you think the League of Billionaires might have heard from their shadowy masters at Davos?

What commands were issued?


"Pull it."

spinone's picture

"OK, one more time, is everybody positioned for the crash?  OK, we'll start it tomorrow."

Squid-puppets a-go-go's picture

"ok you twerps - youve had 6 months of gold at wholesale to get in the lifeboats, we're flippin the switch in 10, 9, 8..."

Race Car Driver's picture

> What about that bald-headed fuck Hank "Tanks In The Streets" Paulson?

> Where's Tiny Tim Geithner and the usual suspects?


They're dead, Jim!

Lol ... jus' kidding. They're so evil, they're fuckin' immortal.

But, man, weren't they the good ol' days? Just before the last remaining shreds of velvet credibility came falling off of the clenched fascist fist?

They say that dying men on the battlefeild cry for Mommy. We all want what is familiar, comforting and sentimental during stressful times and I'm man enough to say, I miss Bill Clinton.

TeamDepends's picture

Sheeit, what about the bald gnome Kashkari?  Whose nightmares aren't filled with him?

MisterMousePotato's picture

I recall when Madelaine Albright came along, thinking, "Who the fuck ever woulda thought we'd miss Warren Christopher?!?"

icanhasbailout's picture

Believe it or not, Kashkari is actually running for Governor of California, no joke.

quasimodo's picture

Makes perfect sense, that state has no "Kash" to "kari" anyway. Nevertheless, if he sucks a good moonbeam then I suppose favors will be returned.


Oh regional Indian's picture

"Just before the last remaining shreds of velvet credibility came falling off of the clenched fascist fist?"

In here amongst comments, gems.....


indygo55's picture

Where's Tiny Tim Geithner and the usual suspects?


I know. It was so much more interesting the last time.

Four chan's picture

paulson did his dastardly deed and promptly retired with a few billion dollar pay check.

Quantum Nucleonics's picture

Uh, Timmy is working for Warburg Pincus.  Who is to say he didn't trigger the selloff so his bosses could pick up some companies on the cheap to run through the private equity machine.

Meat Hammer's picture

Using fake money to pump the stock market up to all-time highs, ensuring that you have plenty of profits with which to buy all of the real assets whose values will be crushed when you pull the drain plug.

Priceless.  No, really, it cost them nothing.

For every(body)thing else there's FEMA camp.


Mentaliusanything's picture

Post of 2014. Meat Hammer knows how to cut the meat from the bone

bit like Mickey Dee. It really is meat on Drugs. 

up size and die

Best and most awake moment  since this place was a blog

Hammer away until all wake the fuck up.. It cost nothing but all you worked for. fucking insane from Down under.


jerry_theking_lawler's picture

So, here's what I see as an example of the Fed. You are given unlimited funds every day at 8am. You can go to the casino and play all day. At 8pm, you must cash out. You are allowed to keep the 'profits' of everything above what you borrowed. Any losses are just wiped clean.

I am correct on this analogy? From a .Fed/.Gov/banking perspective what are the downside risks? None? For every other joe smoe out there, what are the risks? INFLATION.....because in this analogy the unlimited funds aren't free...

The system is corrupted and the market is gamed. Why would any logical person walking into this Casino?

new game's picture

patience is king, then cash as deflation is unstoppable when the majority are broke and up to debt to their bald head or dyed hair. humans are fucking stupid. just be a little smarter and wait to pounce on opportunity...it be happening.

Rick Blaine's picture

I freely admit I don't know jack shit about long term "technicals" and stuff...

...but after taking another look at the Nikkei since 1990, it's interesting that the policy makers in Japan have been fighting deflation since then...and since then the Nikkei has consistently made lower and lower "highs."

...and that pattern seems to be holding true...at least as of right now.


TeamDepends's picture

Brother please, if we have learned anything in our fifteen years on this planet, it is that you should never freely admit to anything on the interweb.

Bohm Squad's picture

I can see how that statement may or may not be true!

Zero Point's picture

Nonsense. I for example, am an 8 foot ninja.

My sensei Mr Miyagi looked very perturbed this morning as I waxed his car.....

Pig Circus's picture

Roses are Red,

Violets are Blue,

Bernanke's a cunt and Yellen also.

Wahooo's picture

Scotty, more intangibles, NOW!

GetZeeGold's picture



I'm trying as hard as I can Jim.....the place is flooded with radiation.


Better get Spock up here.

BringOnTheAsteroid's picture

When Scooby Doo is in the market it is time to get the hell out.

Vice's picture

Wait, I thought everyone was in agreement that bad news was good news. I just got used to this new normal, and now they go and pull the rug out from under everyone again. 


Those fuckers. 

disabledvet's picture

actually if you're a true contrarian this is exactly what you're waiting for.

"Been hiding out in a rock and roll band."

I'm not saying "buy" but certainly this is when the planning phase begins. One way to begin your planning phase is to imagine what the other like minded "planners" who actually...in theory...have the ability to act on those plans are up to.

The key is to have at least a minimum grasp of reality...hence "Zorro Hedge" as your "anchoring heuristic."

Renewable Life's picture

I'll be stunned if the Nikkei isn't down 4.5% and blows thru 14,000!!!

Little over hour and a half left in trading and were down 550 and accelerating!!

DOW will smash thru the 15000 level before the open at this rate, we could be seeing 500-750 off tomorrow, unless of course Grandma Yellen wants to start jaw boning!!! But I think she wants to feel needed, so why not wait until there is blood running down the streets on WS!

TeamDepends's picture

Isn't there a jobs report on Friday?  That should right the ship....

HulkHogan's picture

US markets are up right now. Forget about a 500 point drop.

new game's picture

what you have is unlimited funds vs ma and pa.

my bet is a floor will be establish at a 2.5 handle...

keep the train on the tracks-all aboard-buy the fucking dip.

yellen the conductor, says pomo down the tracks-all good!

zirpped yet?

Zgangsta's picture

Ha! You lose!  The Nikkei closed several points above 14,000!

Renewable Life's picture

Yep, glad I didn't have money on it!!!
But all 14,000 means is, they hung in there at this level for another day, just hoping and praying that Grandma Yellen will "say something" and save their world!!! My gut instinct on that is, she'll be a fickler bitch then that push over, panty waste Ben!

Grandma has some latitude here, to let a little air out of this bubble Ben blew and orchestrate a more solid position! She has her number, and trust me, it's not anywhere near 15,300!! It's probably closer to 12,300, then she can still be "your savior" and "pause" the taper, and try to put a floor in this bitch!

But the market is going to give Grandma a fucking ass kicking on this one, IMO, they won't stop the self inflicted blood bath until, the announcement is........."Grandma halts taper, and expands QE to 100 billion a month". Anything less, and the market is ready to go full retard, and get suicidal if need be!!! The drug addict doesn't give a shit about being rational, they want their fucking fix.........NOW!

Mentaliusanything's picture

Refer to Meat Hammer about 10 posts above. Clarity is a cold bitch. If its a free meal, your paying. Bubbles burst and there is nothing but a bang, followed by WTF? 

GetZeeGold's picture



Yep, glad I didn't have money on it!!!


Neither did I. Who is crazy enough to do that?

Wile-E-Coyote's picture

I'm only watching from the sides......... I just got splattered with blood......my best shirt too.