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AsiaPac Stocks, FX Tumble As China Devalues Yuan Most In 4 Weeks, Sees "No Need For Massive Economic Stimulus"

Tyler Durden's picture




 

Losses from the US session extended following comments in one of the government's official mouthpieces that "China doesn't need massive stimulus." A BoNZ rate cut (blaming China's devaluation) sent Kiwi tumbling, Ringgit hit a fresh 17 year low against the USD, Japanese stocks collapsed over 650 points so far, and Chinese stocks are opening notably lower. Volume remains de minimus (99% below average) in Chinese futures trading as China devalues the Yuan by the most since Aug 13 and injects another 80 billion Yuan liquidity.

 

US weakness did not help but once this hit early on in the Asia session...

  • CHINA DOESN’T NEED MASSIVE ECONOMIC STIMULUS: FINANCIAL NEWS

Adding:

  • *CHINA FACES DOWNWARD PRESSURE IN 2-3 YEARS: PBOC ADVISOR HUANG
  • *CHINA YET TO FIND NEW GROWTH PILLARS: PBOC ADVISOR

Losses grew.

*  *  *

The Bank of New Zealand cut rates:

  • *NEW ZEALAND CUTS KEY INTEREST RATE TO 2.75% FROM 3.00%
  • *WHEELER: SIGNIFICANT YUAN DEVALUATION WOULD BE BIG WORRY
  • *RBNZ SAYS FURTHER NZD DEPRECIATION IS APPROPRIATE

Slamming Kiwi lower...

  • *NEW ZEALAND DOLLAR DROPS MORE THAN 2% FOLLOWING RBNZ RATE CUT

 

The Maysian Ringgit dropped another 1% in the early trading - to its weakest since 1998...

  • *MALAYSIA'S KEY STOCK INDEX OPENS DOWN 0.7% AT 1,592.16
  • *MALAYSIAN RINGGIT DROPS 1% TO 4.3728 PER DOLLAR

 

 

Japanese stocks opened down 550 points at the cash open having fallen all day during the US session... Now down 650 points

 

Broad AsiaPac stocks are lower...

  • *MSCI ASIA PACIFIC INDEX DROPS 2.2%, EXTENDING LOSS

And China opens weaker (despite Fink's help)...

  • *CHINA'S CSI 300 STOCK-INDEX FUTURES FALL 0.5% TO 3,308.4

As China injects another 80 billion Yuan...

  • *PBOC TO INJECT 80B YUAN WITH 7-DAY REVERSE REPOS: TRADER

And then devalues The Yuian by th emost since 8/13...

  • *CHINA SETS YUAN REFERENCE RATE AT 6.3772 AGAINST U.S. DOLLAR
  • *CHINA WEAKENS YUAN FIXING BY 0.22% TO 6.3772/USD

 

Perhaps the recent Treasury selling gave them enough to hold the Yuan down here?

 

Charts: Bloomberg

 

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Wed, 09/09/2015 - 21:23 | 6529480 algol_dog
algol_dog's picture

Just your everday ordinary price discovery.

Wed, 09/09/2015 - 21:32 | 6529508 JungleCat
JungleCat's picture

Perhaps Helicopter Ben Schmoemanke could assist in this price discovery over in Asia?

Wed, 09/09/2015 - 21:44 | 6529561 VATICANT
VATICANT's picture

WAR BITCHEZ

Wed, 09/09/2015 - 22:50 | 6529792 knukles
knukles's picture

This makes sense.  Why bother to spend all the reserves with a calm, orderly devaluation?  Why not just let it rip?  Gonna get there anyway. 
Reserves are there for when you don't want your currency under pressure.  Better things to buy. 
Like gold.

Thu, 09/10/2015 - 00:25 | 6530045 mophead
mophead's picture

KABOOM

Thu, 09/10/2015 - 04:48 | 6530353 Sudden Debt
Sudden Debt's picture

And what would the Libor rigging be compaired to their devaluation?

How does ZIRP compaire to their devaluation?

 

We're doing shit that is way way worse and we're doing it already for a shitlong time.

 

I even don't understand why markets are going down! Because all it means is that everybody will soon be printing more money. And that's also called a devaluation.

The dollar and the euro already devalued 25% in 7 years time!! 

Thank god for the deflation spiral or we'd be in a world of hurt right now.

Wed, 09/09/2015 - 21:44 | 6529562 markmotive
markmotive's picture

China's growing at 4%. They will be stimulating very soon.

http://www.planbeconomics.com/2015/09/china-could-lead-is-leading-global...

Wed, 09/09/2015 - 21:37 | 6529539 Big_Hitman
Big_Hitman's picture

Great freelance work opportunity for anyone... Work for three to eight h a day and profit in the range of $5000-$12000 each month... Weekly payments... Here is what i do... www.earnmore9.com

Wed, 09/09/2015 - 21:56 | 6529605 Payne
Payne's picture

Every bit of money they inject into the market is a T-Bill that they have sold.  Looks like they are on track for $100B+ in sales for this month.

Wed, 09/09/2015 - 23:07 | 6529808 ThroxxOfVron
ThroxxOfVron's picture

"Every bit of money they inject into the market is a T-Bill that they have sold.  Looks like they are on track for $100B+ in sales for this month. "

 

No.  Their 'Foreign Reseves' are NOT simply a horde of US Treasuries.

Neither is what is being injected into the equities markets doesn't encompass the interventions.

The Government and govenment owned/managed corporations are borrowing out of their own commercial Banking system such as it is.

...Leverage, derivatives, rehypothecation -and short selling.

Don't listen to what they say.  

Watch and use your reason -and your imagination.

There are many ways to counterfeit and lie, and this is a war between countefeiters and liars.


Thu, 09/10/2015 - 09:40 | 6530790 Payne
Payne's picture

It is clear that you have not been trained in the intelligence services.  Making inferences on limited data but understanding the objectives of your combatant.

Your statment isn't even formed into a refutation only a different assertion that supports a New York world view.

Thu, 09/10/2015 - 00:34 | 6530069 Lord Farquard
Lord Farquard's picture

Watching the great global unwind is quite surreal..

Wed, 09/09/2015 - 21:26 | 6529487 TheAntiProgressive
TheAntiProgressive's picture

SELL! SELL! SELL! before it is all gone.......

Wed, 09/09/2015 - 21:27 | 6529492 Oldballplayer
Oldballplayer's picture

When you shoot it, make sure you get it in the head. It's the only way to kill a zombie.

Wed, 09/09/2015 - 21:32 | 6529517 azusgm
azusgm's picture

Use a silver bullet made of metal, not paper.

Wed, 09/09/2015 - 22:31 | 6529711 CrazyCooter
CrazyCooter's picture

Does that work for (zombie) banks?

Regards,

Cooter

Wed, 09/09/2015 - 21:27 | 6529493 papa_lazarou
papa_lazarou's picture

Things will continue to become increasingly unhinged the closer we get to the end.

Then...POOF! Order out of chaos.

Wed, 09/09/2015 - 21:30 | 6529507 Nothing Ever Happens
Nothing Ever Happens's picture

Well, that de-escalated quickly.

Dive, dive, dive.

Wed, 09/09/2015 - 21:40 | 6529511 tom a taxpayer
tom a taxpayer's picture

 China doesn't need massive stimulus because China will be invading Alaska. 

One word: muskeg

https://www.youtube.com/watch?v=PSxihhBzCjk

Wed, 09/09/2015 - 21:33 | 6529521 richiebaby
richiebaby's picture

Time to sell mor treasuries. Prease call Belgium and unroad dis crap!

Wed, 09/09/2015 - 21:33 | 6529524 Salah
Salah's picture

This is clearly reflective of Pluto in China's 2nd House.  Total destruction.

Thu, 09/10/2015 - 06:32 | 6529571 MSimon
MSimon's picture

I believe it is also in their first, third and fourth house. Ask Xi.

Wed, 09/09/2015 - 21:34 | 6529527 khnum
khnum's picture

collapse Mr Author- no if some dopey central bank increases the market 7 per cent for no good reason anyone whos half smart will look at profit taking the next day

Wed, 09/09/2015 - 21:36 | 6529532 me or you
me or you's picture

 

Dow down tomorrow 2000 points.

And the earth is hallow.

Wed, 09/09/2015 - 21:39 | 6529545 nmewn
nmewn's picture

If that happens I can retire ;-)

Wed, 09/09/2015 - 22:53 | 6529802 HungryPorkChop
HungryPorkChop's picture

And you are short ___________?  Please fill in da' blank as I'd hate for you to retire alone!

Thu, 09/10/2015 - 05:12 | 6530364 Farmer Joe in B...
Farmer Joe in Brooklyn's picture

XLF...financial services index. Out-of-the-money puts for more punching power. Major leverage if you've got the balls to bet against the Fed and risk losing it all.

Boat drinks, bitches!!

Tick tock, tick tock...

Thu, 09/10/2015 - 01:08 | 6530133 Nobody For President
Nobody For President's picture

Me too.

Thu, 09/10/2015 - 00:48 | 6530101 jcdenton
jcdenton's picture

The Earth is holy? It could be hollow. That is a fair debate. However, holy? I seriously doubt that ..

Now according to some analysis and interpretation of Elliot Wave Theory, the Dow could be down as much as 5000. Very, very soon .. (like before the end of the month.)

Thu, 09/10/2015 - 05:40 | 6530379 gmak
gmak's picture

Elliott Wave?  I suppose you believe in the tooth fairy as well?

Thu, 09/10/2015 - 06:31 | 6530401 MSimon
MSimon's picture

Kondratieff Waves make more sense.

Wed, 09/09/2015 - 21:36 | 6529533 q99x2
q99x2's picture

HeeeHeeee they must have listened to Fink. Fools.

Wed, 09/09/2015 - 21:37 | 6529538 max2205
max2205's picture

It smells like victory 

Wed, 09/09/2015 - 21:38 | 6529541 nmewn
nmewn's picture

"Do-Not-Panic!!! 

I've talked to my people, your all knowing, all seeing, all everything, benevolent, altruistic government bureaucratic official regulatory bodies (in concert with central banking cartels worldwide) have this all under control. Don't sell, you need to be BUYING!" - Wang Krammer

Wed, 09/09/2015 - 21:39 | 6529546 Soul Glow
Soul Glow's picture

And one day we will wake up and none of the fiat currency will be worth anything.

Wed, 09/09/2015 - 21:43 | 6529558 Eahudimac
Eahudimac's picture

What? Everyone's selling? Then BUY! BUY! BUY! Now everyone is buying? Then Sell! Sell! Sell!

Wed, 09/09/2015 - 21:45 | 6529566 Goldilocks
Goldilocks's picture

Wang Chung - Dance Hall Days
http://www.youtube.com/watch?v=V-xpJRwIA-Q (3:58)

Wed, 09/09/2015 - 21:48 | 6529576 Nothing Ever Happens
Nothing Ever Happens's picture

Nikkei down over -800 Ho-ree-fuk

Wed, 09/09/2015 - 22:25 | 6529692 spanish inquisition
spanish inquisition's picture

Impossible, that would mean yesterday was a suckers rally. 

Wed, 09/09/2015 - 22:30 | 6529706 adr
adr's picture

Is there anything but a suckers rally?

Wed, 09/09/2015 - 22:05 | 6529600 buzzsaw99
buzzsaw99's picture

that last sentence doesn't make sense to me. if one merely wanted to weaken one's currency one would simply buy usd assets ala japan. the only thing that makes sense is that the yuan is wanting to crash due to debauchery and outflows but they are supporting it in a controlled descent.

Wed, 09/09/2015 - 22:01 | 6529616 Redart
Redart's picture

I don't know if you guys saw the high entropy (not volatility) on S&P futures and SPY ETF since 2:22:22 pm until the close but heavy hands were very present. Ask nanex about it. geez is frightening, someone is loading for a 2-3 day swing with high range

Thu, 09/10/2015 - 00:48 | 6530098 playdoh
playdoh's picture

contract rollover coming

Wed, 09/09/2015 - 22:01 | 6529619 franzpick
franzpick's picture

Longest, most bearish pattern I have ever seen - the current 4 year long China H-Shares coil-breakout-reversal. It'll go from 9600 to 6000, minus 40% more, and will drag world indices down with it. Click the monthly to see the 1st half of the collapse pattern as well as what the last half of the disaster will look like, after western debt-binge banking policies have been attempted by centrist-thinking ChiComs:

http://www.investing.com/indices/china-h-shares-futures-advanced-chart

Thu, 09/10/2015 - 03:38 | 6530316 BurningBetty
BurningBetty's picture

It seems that the members of investing.com are in unison. It can't get more bearish then already is: 100%.

Wed, 09/09/2015 - 22:02 | 6529625 Redart
Redart's picture

I forgot to say. B_T_F_D

Wed, 09/09/2015 - 22:16 | 6529666 Rathmullan
Rathmullan's picture

China props its market through next Thursday and then it doesn't. "Year of the Sheep" - very appropriate.

Wed, 09/09/2015 - 22:16 | 6529667 Seasmoke
Seasmoke's picture

What the hell is the price of Gold doing in the rest of the World ???

Wed, 09/09/2015 - 22:22 | 6529678 Nothing Ever Happens
Nothing Ever Happens's picture

Looks like the prunge protection team is on the nikkei. Will they have enough steam? Oh, the drama.

Wed, 09/09/2015 - 22:28 | 6529699 adr
adr's picture

It's all Tim Cook's fault. If Apple would have shown a rounder square 6" iPhone, stocks would be up 5%.

Apple didn't go high end enough with a Hermes leather band. I mean a $1 piece of stitched leather selling for $1100 isn't bourgeoisie enough. It should have been a vinyl band selling for $5000.

I like people saying it is awesome because it is the cheapest product Hermes has ever produced. IT'S A FUCKING LEATHER WATCH BAND MADE IN CHINA WITH A HERMES LOGO STAMPED ON THE INSIDE!!!

For $1100 it should be made of the belly skin of baby seals clubbed to death by Bildebergers.

but it unlocks a Hermes watch face for the Apple watch.... WELL HOLY SHIT, A GRAPHIC MADE IN ADOBE ILLUSTRATOR SURE MAKES IT WORTH $1100. Hell make it $2200 for allowing the graphic to switch from a black background to a white one.

There is stupid and them there's iStupid.

Thu, 09/10/2015 - 01:25 | 6530158 NoWayJose
NoWayJose's picture

iDidn't see enough to make me rush out and buy any new iApple toys.

Thu, 09/10/2015 - 04:51 | 6530358 Tinky
Wed, 09/09/2015 - 22:42 | 6529754 milking institute
milking institute's picture

INFIDELS,KOMRADES,remain calm,the central commitee is in firm control of the market!  please look for further instructions in the coming days as your leaders are tracking down and rounding up suspicious short sellers and other related activities against the state.

Thu, 09/10/2015 - 06:25 | 6530398 MSimon
MSimon's picture

They are also going after tall sellers. And sellers of average height.

Wed, 09/09/2015 - 22:46 | 6529773 Ms No
Ms No's picture

Yes, I have been waiting for this all day.  Explosions tomorrow and two trading days until Shemitah.  I hope these Zionist banking pricks expose themselves to the world because they just can't help themselves.  This isn't China's fault either, that the western media over hyped a major stimulus, they set themselves up.

Wed, 09/09/2015 - 23:00 | 6529831 Tyrone Shoelaces
Tyrone Shoelaces's picture

I agree with you, China is a follower - not a leader.

They depend on a lot of things, one of which is the American consumption market, which has hit a wall.  And on top of that, they are dealing with their own 'tech mania' bubble like we did in 1999 - only worse.  Scary part is that the heads say they have the 2nd strongest economy on the planet, so what does that say about us?

 

Wed, 09/09/2015 - 23:28 | 6529913 AntiFabian
AntiFabian's picture

So help me out here, China good or China bad? Or..is it all the Jew's fault?  Which is it?

Thu, 09/10/2015 - 00:19 | 6530028 Arthur
Arthur's picture

Those damm chinesejews of course. .........................................................sarc

Thu, 09/10/2015 - 06:16 | 6530393 MSimon
MSimon's picture

The Chinese are known as "The Jews of the Orient" - look it up.

Thu, 09/10/2015 - 00:59 | 6530117 jcdenton
jcdenton's picture

Please, it's  ..

Shmita, Hebrew: ?????‎, literally "release"

 

Honestly, considering t-minus 2 days and counting, I would be paying more attention to Rosh Hashanah. Especially when it occurred in 3 B.C.

https://youtu.be/O44nNzRa81Q

You want to get spooky? Then by all means, please let's get spooky. Real, spooky ..

Thu, 09/10/2015 - 06:14 | 6530392 MSimon
MSimon's picture

And then Shmata - rags.

Thu, 09/10/2015 - 06:24 | 6530397 MSimon
MSimon's picture

You can't help yourself. You want to live beyond your means? The banks will loan you the money. At interest.

 

The only power the Devil has is your willingness to do a deal with him.

 

And the NWO boys are even cleverer. They exploit your hate. It doesn't matter. Any hate. Even your hate of them will be exploited. Very clever fellows.

 

The evils being visited on us are our own DAMNED fault.

 

Repent. The end is nigh.

Wed, 09/09/2015 - 22:49 | 6529781 Alpacanio
Alpacanio's picture

Looks like China found another buyer of 80 Billion T-bills...

Wed, 09/09/2015 - 22:55 | 6529812 Honey Badger
Honey Badger's picture

*CHINA TO THE FED: WE CAN DO THIS ALL DAY BITCH

Thu, 09/10/2015 - 06:12 | 6530388 MSimon
MSimon's picture

"UNTIL WE CAN'T

Wed, 09/09/2015 - 22:56 | 6529818 large_wooden_badger
large_wooden_badger's picture

So more Chinese chemical stockpiles get blown up overnight, news in the morning.

Shit blowing up in China is the new normal. Oh, and then another North American pipeline...

Wed, 09/09/2015 - 23:04 | 6529843 Atomizer
Atomizer's picture

The IMF must have gastrointestinal PTSD in monetizing another controlling interest. Bleeding the department is a joke

.International Unequal Exchange - YouTube

Welcome to central banking theory. 

Thu, 09/10/2015 - 00:29 | 6530054 Cosmicserpent
Cosmicserpent's picture

No prob. China's gonna let foreign central banks onshore into the Yuan market.

http://www.bloomberg.com/news/articles/2015-09-10/china-to-allow-foreign...

Wed, 09/09/2015 - 23:53 | 6529966 Evan Wilson
Evan Wilson's picture

Where is the PPT?

 

Or are they all asleep right now and won't get going until near the opening bell in New York at 9:30am?

 

 

Thu, 09/10/2015 - 01:23 | 6530154 NoWayJose
NoWayJose's picture

Always love to see a currency like the NZD hammered for having a 2.75% rate versus a currency sitting at a zero percent rate along with 19 trillion in debt!

Thu, 09/10/2015 - 01:39 | 6530180 ChargingHandle
ChargingHandle's picture

Hey bankers stop trying to make chicken salad out of chicken shit. Let this mother crash so we can have a real recovery based on fundamentals.

Thu, 09/10/2015 - 01:59 | 6530217 gmak
gmak's picture

hasn't stopped the usual BoJ overnight ramp of e-mini on relatively low volume.  Looks like nothing was happening and then K-Hen must have rolled out of bed and sent a blistering call across the Pacific to get some Asian action.

Thu, 09/10/2015 - 08:23 | 6530571 headhunt
headhunt's picture

Now there is a bubble - the Yen is the biggest costume party on the planet

Thu, 09/10/2015 - 03:21 | 6530298 Apostate2
Apostate2's picture

Li 'Superman' Ka-shing has completed his move to pull up stakes in China and Hong Kong with the merger of his last asset in HK, Cheung Kong Infrastructure Holdings with Power Assets Holdings.

Best indicator yet that the writing on the wall is not grafitti.

Thu, 09/10/2015 - 03:34 | 6530307 BurningBetty
BurningBetty's picture

So, let me see if I completely get this...first, China devalues CHY, twice! Then they intervene directly in the FX market to defend the CHY. Now they are devaluing again? I don't get it. Devalue, then spend billions upon billions on: "Oh crap, we didn't mean to devalue that much, we need to buy" and then devalue again? Where is the logic here? Can someone explain?

Thu, 09/10/2015 - 06:39 | 6530406 buzzsaw99
buzzsaw99's picture

it's all bullshit

Thu, 09/10/2015 - 08:01 | 6530518 datura
datura's picture

I am from EU and I can tell you that China is buying everything here very fast: "property, companies etc.". This all seems to be accelerating for the last few months. So you ask what is going on? I am not so sure yet, but if you consider all the dots, like China removing the dollar from oil trade, it does seem that China is finally ready (or perhaps does not have any other option now, in the face of the USA and EU deflation) to wean itself off the dollar, even despite of all the risks. 

Another article claims that one of the reasons may be that gold has run out and China cannot buy more gold from the West (which they considered as the most important compensation for being paid the worthless dollar). Quote:

"China has sold $100 billion worth of Treasury bonds over the last two weeks. Before they sold these, they devalued their yuan by about 5% which is the same thing as making their dollar holdings worth 5% more in yuan …so they increased their sale by the equivalent of $5 billion! Please understand the following because it is VERY important, we have not experienced hyper inflation in the U.S. because the debt was always “sterilized”. We actually exported the inflation to other nations and as long as they did not sell the actual dollars (if they sold Treasuries), the trade remained sterilized. It was reported Friday China had actually sold their dollars realized from the Treasury sales for …you guessed it YUAN! This drove the yuan up versus the dollar so China added even more to their trade. Brilliant!"

The rest of the article is in the link below.

 

http://www.globalresearch.ca/something-just-happened-chinas-gold-stocks-...

Thu, 09/10/2015 - 08:21 | 6530567 headhunt
headhunt's picture

Not the same.

Devalue Yuan is good for their export based economy.

The billions of Treasuries sold are to support their banks and their internal markets.

Thu, 09/10/2015 - 04:37 | 6530347 I AM SULLY
I AM SULLY's picture

9/15/15 is coming ...

Of course, it could have been 9/9/15 ...

(but it's not)

"915" Baby ...

(don't be in El Paso that day)

https://www.youtube.com/watch?v=PPcormivj2A

Thu, 09/10/2015 - 06:14 | 6530390 Eyeroller
Eyeroller's picture

And.... US futures are UP! Makes PERFECT sense!!

 

Thu, 09/10/2015 - 08:18 | 6530557 headhunt
headhunt's picture

These have all been on a long downward spiral - nothing new.

Look at 3-5 year pricing and they are all on a long slide down.

Thu, 09/10/2015 - 09:20 | 6530735 Tarshatha
Tarshatha's picture

I love it,

China Devalues the Yuan and dumps more US junk off its balance sheet.

Question, who is stupid enough to buy it and

when will the stupid stop buying it?

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