Nikkei Soars By Over 400 Points As BOJ Redirects Attention From QE To Loans

Tyler Durden's picture

Clearly boxed in by the concern that any increase in their QE program will shift sentiment from stimulus to monetization, the BoJ kept the money-printing the same but redirected focus by raising the ceiling on their bank lending facility (from JPY3.5 trillion to JPY 7 trillion). This is being presented to the public as dovish despite the balance sheet recession's debt minimization - not profit-maximization - mantra as was oh so well illustrated by the dismal GDP prints since Abenomics has been in existence. It's not like Japan needs "low-interest" rate loans... are their rates high? Of course, in order to maintain some semblance of hope and belief in this new "common knowledge", USDJPY was smashed higher (running stops over 102.50) and that leveraged Nikkei futures up over 400 points in the space of a few minutes. S&P futures are modestly higher but EM FX is drifting lower.



Notice the initial disappointment in JPY and Nikkei with no additional stimulus only to be 'managed' higher...


The question on everyone's lips, of course, is - what is the BoJ's half-life?


S&P futures and Emerging Market FX ain't buying it for now...

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VD's picture

half-life not very long methinkz...

DeadFred's picture

Cheap way to get two posts out of one event. If Tyler wanted to be brave he would posit a opinion on whether it will be measured in minutes, hours or days. I'm going for 24 hrs for a complete round trip.

wintermute's picture

Has Congress noticed that Japan is a "currency manipulator" yet?  (Because US exporters are being bitch-slapped - again).

chinoslims's picture

All's fair in war and QE


National Blessing's picture

They get a temporary reprieve from deflationary pressure.  But gravity is gravity.  The Yen will soar again.  Blockheads.

disabledvet's picture

destroying a currency is not hard.

"managing its destruction" however is.
they're doing everything they can to raise dollars while at the same time devaluing massively.

That makes every dollar denominated theory...up for sale.

GetZeeGold's picture




Money everywhere......but not a drop to spend.

Exponere Mendaces's picture



Tyler said it was GOING DOWN MAN!?


I guess he's bullshit on Bitcoin too. Nice track record.

infiniti's picture

Dragging US equity futures higher too, of course.

SAT 800's picture

Not so far; down a little 9;10AM NYT.

Rukeysers Ghost's picture

Damn the torpedoes, full speed ahead!

thedrickster's picture

ZN not playing along.

slightlyskeptical's picture

The Japanese are not borrowing...what benefit does lending yen to hedge funds provide to Japan? This is basically Japan throwing in the towle on QE.

NDXTrader's picture

Thank you, ZH. Great analysis. Sometimes you have to ask why others can't see it. Words...nothing but words

ebworthen's picture

"Baffle 'em with Bullshit God Damnit!  Baffle 'em with Bullshit!!!"

Bullish for hot Japanese teens selling bonds to old men.

There's a foundation for the future.

Almost as good as the U.S.S.A.

Fucking assholes.

LetThemEatRand's picture

Remind me again how the bankers lose control when they have unlimited power to manipulate the markets at the expense of the middle class and said middle class is still sleeping?

hobopants's picture

My guess is that the greedy sociopaths run out of middle class wealth to steal and start fucking each over at the expensive of the system.

LetThemEatRand's picture

No doubt.  Thus the hollow points to keep us in line while they vie for control.

ThroxxOfVron's picture

"Remind me again how the bankers lose control when they have unlimited power to manipulate the markets at the expense of the middle class and said middle class is still sleeping?"

Patience my boy; in due course the slumbering giant will be aroused and tradgecomedy will ensue.

They haven't even finished stripping the fat let alone tasted the meat on them bones...

OC Sure's picture

"Remind me again how the bankers lose control when they have unlimited power to manipulate the markets..."

Reminder: Bankers lose control because your premise is incorrect. They do not have unlimited power to manipulate the markets.

Their power is limited specifically by the market. While they do corner the market on interest rates for now, they cannot corner it perpetually. Thus is the market. They are fucked by their very nature to attempt the corner.


chinoslims's picture

Fuck I took the short on USDJPY.  Better luck next time.  I'll take the 13.5 pip loss


Leveraged Algorithm's picture

Long - what would make you short when they are still braindead?

TheRideNeverEnds's picture

I am thankfull I took the few pips I had with my long yen and moved into short GBP/USD its not great but at least its not terrible (yet).   Though I am thinking since I am short it now the pound is going straight to 2.0 from here.

SAT 800's picture

Keep the faith and hang in there; I have money on this too; The Pound is a currency with no visible means of support and a moribund economy behind it; this is just a short term top. you need a time line like until December of this year; short term FX trading is just a waste of time,  usually.

Spungo's picture

Japanese stocks should shoot to the moon as people realize their government bonds will become worthless. Panic sell bonds. Panic buy stocks. Yields should explode, stocks should explode, currency should become worthless.

aka9's picture

Unlike market consensus, Japan stock could go up together with JGB until the very last minute, and intermittent panic in Japan will bring USDJPY lower together with Nikkei until it's getting near insolvency! I would guess USDJPY will touch 80 handle first before becoming worthless.

Loanman26's picture

And as usual our US open will be green. The mirage continues.

Predictable as the sun coming up in the morning. WTF



Spungo's picture

"My guess is that the greedy sociopaths run out of middle class wealth to steal"

Actually, it's mostly the middle class stealing from the middle class. The biggest debt burdens are social security and medicare, which mostly benefit the middle class. The military is a giant expense that mostly employs poor and middle class Americans. It's always the middle class voting against any cuts to these programs. Americans WANT the country to be destroyed. The politicians are just doing what their voters want.

hobopants's picture

"The biggest debt burdens are social security and medicare, which mostly benefit the middle class."

Why is it a debt burden? It couldn't be because all the money allocated for it was used to bail out banks and fund various other adventures in cronyism? and it doesn't benefit the middle class any more than the poor, The middle class just get to pay for it.

"The military is a giant expense that mostly employs poor and middle class Americans."

To the benefit of oil companies and the military industrial complex owned by the elite. pay a solider peanuts and reap the rewards in looted natural resources and arms contracts.

starman's picture

Harakiri or Kamikaze? Both end well....not so good. Your choice.

Spungo's picture

Set aside? Those funds were never set aside. It's a ponzi scheme. The money you pay into the system is payed out to the people who were already retired. People knew this from day 1.
And yes the military is a gigantic welfare program for poor people. Run on a platform of cutting military spending and see how many votes you get.

q99x2's picture

Gold backed trade zones are coming to a world near you

GetZeeGold's picture



Welcome. We accept gold here.

NDXTrader's picture

We are getting close to the straw breaking the Camel's back. This was a desperation move

Platinum's picture

The next few weeks will be critical. I wonder how much time is left...

Oh regional Indian's picture

Right till the ides of march...14-21st...or so...then watch out below.

ReactionToClosedMinds's picture

whew ... that was close --- i can finally sell my Wisdom Tree Japan ETFS (which made me look smart for about 5 months ......)... thank you....can I repeat ..... thk you...... bought these on thought Japan had to to full Aben omics before Abe was in power...... but what a growing cluster fluck.....including PRChina (read Michael Pettis excellent book The Great Rebalancing).

Risk, risk everywhere but all people want to know is what is the next best stock .....................remember that David Weidenr of Marketwatch! 

NDXTrader's picture

Futures are fading. I think anyone with a brain that programs an algo can see this means nothing...AND most importantly means they were scared to do more QE

Rising Sun's picture

Every day is a gong show.


Gotta run - breakfast on Mars and the spaceship leaves in 30 minutes.

Apostate2's picture

Another banker from JP Morgan jumps to his death in Hong Kong (OT)

A man early on Tuesday jumped to his death from the top of Chater House in Central, where Wall Street bank JP Morgan has its Asia headquarters, witnesses told the South China Morning Post.

The man, said to be in his early 30s, went to the roof of Chater House, a landmark 30-floor building in the heart of Hong Kong’s central business district – also near the city’s stock exchange – and jumped.

The incident happened between 2pm to 3pm, a witness said.

Several policemen were seen on the roof but apparently failed to convince the man not to jump, one of the witnesses said.

According to several JP Morgan employees, the man was a forex trader with the company.

However, a JP Morgan spokeswoman said the bank was aware of the incident but it could not confirm at this stage whether the deceased was an employee.

damicol's picture

It is true,, all apart from one tiny detail,

It was the police and two guys wearing black suits and shades  and had  govmint written all through them that dragged the poor guy to the roof.

Of course letting even your girlfriend in the middle of the night   through a whisper in her ear that you are about to become a whistleblower is not going to save you.

I just wonder what they they told him that persuaded him that jumping was the best and only option he had left


Hongcha's picture

Chater house is an important symbol of British colonial banking in HK.  That's like jumping from the roof of the House of Morgan.