Macro Miasma: China 6Mo Highs; Japan/South Korea 9Mo Lows

Tyler Durden's picture

Tonight's round of baffle 'em with bullshit is courtesy of a diverging AsiaPacific economic picture that is anything but supportive of the 'reality' being painted by China's official PMI (which printed at 51.0 as per expectations at 2014 highs) followed by HSBC China PMI which missed its flash estimate (with employment dropping to 8mo lows). South Korea PMI collapsed to 10-month lows; Aussie PMI faded further into contraction at 48.9; and then Japan's Tankan dramatically missed expectations, tumbling to 9-month lows (only to be followed by a 51.1 Japan print (3-month highs). Just to complete the "picture", Chinese home prices fell for the first time in over 2 years. The result, USDJPY rallies and Nikkei 225 soars 200 points... baffled?


So South Korea plunged... as did Aussie PMI


And Japan's Tankan tumbles to 9Mo lows (but PMI beat to 3Mo highs)


Which was promptly followed by this idiot...


Where?!!! Not even Goldman is buying it...

  • Goldman: Tankan Business conditions worsens beyond market consensus

So now we know who is playing J-C Juncker in Japan! Lies moar lies

And China's PMI beat (official) and missed (HSBC) but housing tumbled...via WSJ

China's housing prices fell in June for the second straight month as property developers cut prices to stoke sales amid a glut of housing in many cities.


Many home buyers have stayed on the sidelines in anticipation of further price cuts, while cases of default among smaller developers are rising as companies struggle to repay debt in a souring property market.


Average new-home prices fell 0.5% in June from May, data provider China Real Estate Index System said Monday. Prices declined 0.3% in May from April, the first month-to-month decline since June 2012.


The result - sell JPY and BTFATH!!!

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NidStyles's picture

Where is the Aussie chart then?

DoChenRollingBearing's picture

Korea, Japan and China?  Hey, we buy bearings from all three of them!

Somebody DO something!

Oldwood's picture

The road to hell is littered with Chinese knockoff Timken wheel bearings.

DoChenRollingBearing's picture

Many years ago (I cannot cite the source as it was "industry rumor"), I heard that it was NSK's (of Japan) tapered roller bearings ("Timken type") that were the best in the world (lasted longest in laboratory testing).  Where did this study supposedly take place?

In one of SKF's European labs somewhere.

But, I hear you re Chinese.  We recommend to our Peruvian customers that they buy Korean.  But, our Chinese supplier offers a huge variety of "Hub & Bearing Assemblies" at compelling prices.  A low price is important in Peru.  Customer service...

NoDebt's picture

Having just spent the last 2 hours setting up a set of gears in an old Buick Grand National rear end that's going under my 78 Malibu "project car", the subject of Timken bearings is something I'm currently up to my elbows in.  Pinion bearings (front and rear) and the carrier bearings on either side of my new Eaton posi unit are all Timken tapered roller bearings.

Any way to know if I got the good ones or the bad ones?  I thought Timken was a brand name (it's stamped on the outside of the outer bearing race along with the part number).  Now you got me wondering.  These bearings came from Eaton as a matched set with the new positraction unit.

Did I get quality or did I just install a total crap shoot?

disabledvet's picture

I would not be surprised if the South Koreans don't launch some Theodore-emptive strike against the North. Pure speculation on my part here but something really doesn't feel right here.

Soul Glow's picture

At this point every central bank forecast is spun.  They are all lying to each other to keep the ball rolling, so they can keep the house of cards from tumblin' down.  Look at their doublespeak - PMI is up in Japan but the rates are kept at zero, using the same bond buying/printing program that the EU and Fed use.  China does the same.  Stocks are up, we have a "recovery", and UE is falling, yet given all of these "leading indicators" the bond/security buying programs remain intact.  Why?


kowalli's picture

Thank god that's Russian central bank not printing money...

Soul Glow's picture

Sorry to break it to you, but all central banks are printing "money", hence the above statement, "At this point every central bank forecast is spun.  They are all lying to each other to keep the ball rolling".

kowalli's picture

We will see later who is right and who is wrong=) Russia have about 0 debt that is completely different from EU,USA,China, Japan and etc, so why can't you imagine that russian central bank not printing money?

Soul Glow's picture

All central banks print.  And none of them back their debt obligation in gold.  Whether Russia is "right" or wrong is seperate from those facts.  As for their debt owed, well, it's only an obligation to pay back their debters.  Faith, credit, and whatnot, and nothing to do with gold, only fiat paper.

HUGE_Gamma's picture

Abe isnt done yet

IronShield's picture

Hey, it is until it isn't.  How hard is that to comprehend?  For us traders, this is quite the gift!

Soul Glow's picture

That's what they were saying in 1929.

Oldwood's picture

There is only one place to make profit and that is at the casino. No one can make it shorting so the only other way is to bid it ever higher. All of these institutions have no place to go. They are charged with investing and making unrealistic returns. they are creating their own reality, bidding higher in concerted effort to keep their jobs. Its not their money and when it all blows to hell, none, not a single one will have seen it coming.

KennyW's picture

John 8:44

"Ye are of your father the devil, and the lusts of your father ye will do. He was a murderer from the beginning, and abode not in the truth, because there is no truth in him. When he speaketh a lie, he speaketh of his own: for he is a liar, and the father of it."

starman's picture

party like its 1929! If you know the history of 29 you know the whole world got fucked back then! And so it will again! You can inflate asset prices for so long you can fill air into a balloon until its poppps!

Hedge accordingly!

AdvancingTime's picture

What do stock markets around the world have in common with "girls gone wild" the video of college girls on spring break? The answer is both are crazy out of control. We have grown very complacent as money around the world has continued to flow into intangibles and promises.

Currently the market is all a twitter and locked in a "greed and stupidity loop." The loop can be explained as follows, stocks are rising so why get out, not getting out is causing the stocks to rise. When stocks do pullback it is a buying opportunity. Yes, we are indeed experiencing a double down and let it ride mentality. I don't have to explain the greed part. More about this subject in the article below.