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USDJPY (And Nikkei) Surge Higher as Japanese Car Sales Collapse To 3-Year Lows
And for tonight's menu of disastrous Japanese economic data, we have (drum roll please)... Auto sales. Overall auto sales fell 9.1% YoY to 333,471 - the lowest in 3 years. Minicars dropped a stunning 15.1% YoY according to the Japanese auto dealers association. The response - rather obvious by now - to this terrible news... a 35 pip vertial ramp in USDJPY which can mean only one thing - the Nikkei 225 rallied 150 points... On a side note, following disappointing PMIs, China fixed the Yuan at 4-month lows.
Car Sales collapse....
So buy stocks and sell JPY...
The driver for this latest exuberant ramp appears to be an unprecedented surge in cash earnings YoY with the biggest beat of expectations in over 10 years...
Charts: Bloomberg
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Abenomics is clearly working.
Japan has to align themselves with the Russian and the Chinese in order to survive.
There is quite a bit, centuries even, of bloody history that precludes that from ever happening in the near future.
You mean a bit like the British and the Americans?
But, but Krugman said that if we have more QE like Japan everything will be fine..................
do we see a sea change?
I see a "C" change when I look at your avatar!
The Chinese hate the Japs about sixteen times more than the She-ites hate the Soo-knees. And for good reason.
What reason would that be? A lot is made out of the Sino-Jap antipathy... truth be told, the Chinese have suffered more from the ravages of their own communist party over the last 50 years than anything the Japs did back in the day.
The Japs went ape-shit crazy in Nanking. Never apologized over it, pretend it never happened. Okay. The Nazis contributed to the deaths of 10-20 million Europeans and the financial and physical destruction of the entire continent... in return we put a few hundred on trial, allowed most of them to escape to the US and Latin America and helped them rebuild their economy to its present dominant state.
I think the whole historical enmity meme is a bit overdone.
America has imported much from Asia. Including the Japanese 40 year Macro-economic Stasis Phenomenon.
don't worry... everything is getting compact and cheap, bitchez
what does this mean for the value of my '94 Honda Accord?
Don't those things start going back up in value at some point?
Why does every year spike around February?
Seasonal adjustments? Who the hell knows?
Last ramp before the plunge. Get ready for massive volatility in USD/JPY cross, rise above 105 then straight off a cliff. They will blame it on Yen safe haven status amid whataver geopolitical shock comes, but the real causes will be glossed over. It's coming. get ready. Sept-Oct volaility will be massive target 85-90, collateral damage to Nikkei
I think the $ has a long way to climb still. It will probably hit 84 on the USDX so maybe 107 vs JPY. Gold down to at least $1180. Any and all who are hopeful of a rise in gold or Yen must be wiped out first.
The reaction is a reflection of the true state of things. If they didn't want a fresh round of easing, they would lie about the data. It's all lies, so the numbers are more about policy than reality. In any case, Japan is fucked.
The dolphins are enjoying this. Fuck Japan.
Everybody is afraid of the radioactivity.
There are four downstream jobs for every auto manufacturing job.
You keep using that word "collapse" I do not think it means what you think it means...
I want to say that Zerohedge and Tyler Durden tend to be very bearish in the long run. If the banks are priming the markets, yes, they will run up, but before the collapse there will be signals like any other market. A big drop, a pull back for a while with distribution and a bigger drop.
Yes, the stock market will defy economic news because it is a market itself. Look for distribution days as a signal to pull out. There is nothing wrong with being long if there no sign of a pull back. Don't doubt the NASDAQ can go to 6000 or 7000 before this is over. It took years for the DOW to close above 1000 after it merely breached 1000 in 1966.
Let's watch, wonder, and read the tape.
ES lagging.. will catch up by 930est
Harakiri!
Fucking Ramptastic! look at this shit go S&P 2008 in London FTSEMIB up 300 ! DAX up 100 Gold down $10 Silver new low HOWEVER All Bond yields are higher
Nikkei up another 200 points from the chart above now 15831 on futures
Jeezzuuuuuuussss Christ! When will they learn to mark them sold at the production line and offer 0% for 90 months. This is NOT an economics problem but a sales issue that can easily be addressed!/s
hmm running to the dollar is like British soldiers leaving dunkirk on the Titainic.