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Nikkei Plunges 420 Points, Topix Tumbles 3%, Most Since March
Define irony. Literally hours after financial entertainment outlet CNBC wrote an article in which it said that "As fourth quarter kicks off, there's one market in Asia that has investors excited: Japan" the Nikkei crashed.
First, some more humor from CNBC, which quotes JPM who apparently does not realize that crushing your currency to generate nominal gains is a zero sum game, and instead of pitching Japan as the next big thing, he should be focusing on the "upside" in Venezuela or Argentina:
The world's third largest economy may be struggling to shake off the drag from the sales tax hike that took effect in April, but a weakening yen, improving corporate profits and attractive valuations will likely power gains in equities in the coming months, say strategists.
"We are going to get a combination of value meeting growth – the Japanese market is cheap – so there's value, and on top of that we are going to get earnings growth," said Jesper Koll, head of Japanese equity research at JP Morgan Securities Japan. "
Koll's optimism was shared by several other strategists.
"We're overweight Japan. Abenomics is making progress, albeit slowly, the yen continues to weaken, which is good for stocks, and pension fund reform is a huge potential catalyst," said Simon Grose-Hodge, head of investment advisory, South Asia at LGT Bank.
So yes, entertainment that is free and funny: a great combination.
In the meantime, someone in Japan finally read Zero Hedge articles from early 2013 which were warning about precisely the kind of hyperstagflation that Japan is currently experiencing. That someone happens to be the former finance minister Hirohisa Fujii who in an interview yesterday, said that further falls in the yen may lead to market intervention.
You read that correct: not yen increases, falls! Which, coming just as the USDJPY touched 110 before plunging nearly 150 pips overnight, appears to have been heard loud and clear.
Some of his other comments, which repeat everything we have said from Abenomics' Day1:
- BOJ’s policy of monetary easing leading to weak yen is mistaken
- Weaker yen hurts general public through high prices for imported food and fuel
- Delaying sales-tax rise would lead to a collapse in JGB market, rise in interest rates
Ironic how all these people wait until they are "former" this and that before telling the truth.
Perhaps it was these comments that forced Sumitomo Mitsui to admit that the USD/JPY is entering a correction phase this month, says Shinji Kureda, head of FX trading, and as a result it could decline to 108.26, the low on Sept. 23 and possibly even 107.39, the high on September. Or far, far lower once the failure of Abenomics is finally filtered through the skulls of the fat fingering momos that make up the Japanese market.
And since the Nikkei stock market is nothing but a derivative of the Yen, what happened overnight puts the CNBC article above in a further amusing light because as of a few hours ago the Nikkei closed, plunging by more than 420 points, or down 2.6%, the biggest drop in months, with the Topix crashing as much as 3%, the most since March 14, on volume that was 26% above the average, and wiping out all of September's gains in one session.
Something else those who acted on the CNBC article did not anticipate: all 33 industry groups down, led by real estate and glass/ceramics. The biggest decliners Tokuyama -7.1%, Nippon Electric Glass -5.7%, Suzuki -5.7%.
And now we sit back and await news of another half a trillion plus fat finger as the Bank of Japan desperately struggles to preserve confidence in a crashing economy and market.
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CNBC is like the FED on steroids.
CNBC is a Machiavellian toady on estrogen therapy.
Cramer says, "BOO-YAH!"
Turned on Cnbs yesterday and it was a grey screen all day....maybe Fios dropped them?
Time for the Greenspan/Bernanke/Yellen put?
Maybe it is time to buy gold?
http://www.planbeconomics.com/2014/09/is-now-the-time-to-buy-gold/
Wow a 2% decline. Now a 20% decline would be a crash.
Well...Zimbabwe is doing better I think is what is being said here.
Japan has to import almost all the basics...plus it has the largest metropolitan area in the world (Tokyo) at I believe over 30 us million.
Not a place where you want a "J curve."
They still haven't raised interest rates yet.
New Zealand has though.
To everyone who gave me shit for saying Kyle Bass is the fucking MAN.
Lick it up, baby. LICK IT UP.
Buy the Fuckn' Shill
When my wife and daughter went to live in Tokyo three years ago, the yen to dollar was 76. Now it is 109.6.
"luck exists in the leftovers"
-old japanese proverb.
jb
This means you can buy them back cheap!
It started last week, it doesn't end until the house burns to the ground.
ZH'ers have known this was coming for years.
It's here and now.
Yes, and ebola is in Obola's "birthplace"?...Hawaii (see http://khon2.com/2014/10/01/patient-in-isolation-in-honolulu-hospital-of...).
[Aside: If someone who can "read" people can tell me what is up with the doctor interviewed I'd be fascinated to know your take on her comments, demeanor and body language.]
Remember when Vito Corleone was methodically checked and then quarantined on Ellis Island in Godfather II?
How far we have fallen.
Bout right
Can they print a zillion to prop up a 70% population decline?
The sad Truth will be when there will be no one alive in Japan for the 2020 Oplymic's.
The USSA will benefit for the Radiation levels just today were reported to be 1000X's HIGHER than previous reported in California, what a SHOCK! So many will be moving East, just not far enough EAST!
How many people are still eating food from the west coast? Thank God for the man made drought.
Story on California's Radiation levels being 1000X's HIGHER than first reported.
http://naturalsociety.com/ca-fukushima-fission-products-release-1000x-ti...
The USSA at its finest !
Come... Come to Daddy USD.
Daddy loves you and daddy will kill and plunder to protect your value.
Abe is looking for the shitter.
CNBC....lol, just a joke in the world now, a propaganda show.
Or as ZH's cdad put it so many years ago here....it is just a fuckan BlowHorn.
Cant't they fat finger that up?
But please don't put that picture up! Its fuckin freaky!
Who needs a dick when you've got finger like that.
From One Million Dollar Man to Half Trillion Fat Finger.
Or even a nice plot to sequel of Gold Finger, where 007 has a mission to stop the Fat FInger from blowing up the whole world and comes back shaken, stirred and soiled.
+1000 ... and thanks for the laugh ...
It all ebola's fault I's tells ya .... long live the central Banking Cartels!!!!!!!!!!!!!
the maggots will throw savers and pensioners under the bus every time
NO! No, it boosts exports and its good for the economy!
Please dont say that after all the race to debase around the world.
(Reuters) - Two days after he was sent home from a Dallas hospital, the man who is the first person to be diagnosed with Ebola in the United States was seen vomiting on the ground outside an apartment complex as he was bundled into an ambulance.
...
the response plan is to wait until it spreads and then round people up into haliburton death camps
Did they tell you that the world economy, oil and financial markets are on precarious grounds and you shuld safeguard yourselves? Or they tell you to keep calm and BTFD?
Then they tell you that are worried about that your health and well being because of a deadly virus and you should panic?
Its not that difficult to figure out.
Booga booga! Always gotta be afraid of something. Keeps the cortisol running high and hard. Seriously, put your big boy/girl pants on and see this fearmongering for what it is.
Bet the neighborhood dogs had a feast with that!
Atleast we will be able to take our pets with us to the FEMA camps.
That sounds like quite the visual....... where is the cell-phone-camera evidence???
Pics or it did not happen. If it aint going viral across the internet, I see no reason to believe the regime-stream media. FFS this is nothing more than stupid fear-mongering. If it is not a virus, it is a comet hurling its way to earth. Sheesh.
What are the odds of this vomitting episode NOT being caught on somebody's cell phone??
Today article in Bloomberg crediting Obama with a good economy.
It appears like the house of cards is beginning to topple. We will know by next week. Not the first time it appeared it was on a downhill slide then recovered and set records, for no reason.
It never made sense in my simple mind how a companies like Facebook, Google, Amazon or Apple would be worth more than some nations. I wonder how they will fair when they have to survive on profits, not shareholder stimulous? As for Apple, how they justify charging as much as it does after reading how FoxTron treats and pays its workers, particularly when the suicide debacle occurred a couple of years ago, it is karma.
looks like someone put a boomerang where the fletching was supposed to go on the 3rd arrow
So CNBC will die a slow death as more and more people get reliable information elsewhere. It's getting so bad that CNBC's lies will tell you just the opposite will happen.
without trade a surplus, Japan's helicopter money will soon implode the Japanese economy. I guess that is what the Fed wants.
" I guess that is what the Fed wants."
Absolutely. They desperately need someone to point their fingers at.
The weath that flows out of Japan must flow somewhere and the Fed welcomes it with open arms. Yellen will take all the support she can get.
The Chwistmas Weath effect.
420?
Either something is going up in smoke or I need somebody to explain the numerological reference in this article!
I don't see how Japan Ever has an UP day.
"I don't see how Japan Ever has an UP day."
That is because you are letting reality obscure your view of Japan's utopian fantasy. Stop it!
Interesting both the yen and the stock market in Japan are under pressure. It is clear that the prospects for Japan are lousy. The writing is on the wall. Japan is facing a wall of debt that can only be addressed by printing more money and debasing their currency. This means paying off their debt with worthless yen where possible and in many cases defaulting on promises made. Japan's public debt, which stands at around 230% of its GDP and is the highest in the industrialized world.
The moment the Japaneses stock market fails to rise enough to offset inflation and realizes even a weaker yen will not help we will see a tsunami of money fleeing Japan. This will constitute the end of the line for those left holding both JGBs and the yen. This has been a long time coming and I contend the cross-border flow of money leaving Japan is why some stock markets have remained so resilient . When Japan crumbles it will be felt across the world. More on this subject in the article below.
http://brucewilds.blogspot.com/2014/05/japan-sliding-towards-abyss.html
What? they were right, weren't they? aren't investors EXCITED about Japan's performance ? Looks pretty EXCITING to me.
Yea, like the time the roller coaster broke and I was hanging upside down for an hour. That was pretty "exciting" too.
Weabols Wobble but they don't fall down.