Japanese Stocks Down Over 2% At Open; Nikkei 16% Off Highs

Despite a pre-open dump in JPY to try and spark some momentum, things are not going according to Abe's wealth-creation plan in Japan right now. The Nikkei 225 is down over 300 points (over 16% from its highs a week ago) and the broader-based TOPIX is down over 2.1% from Friday's close (down 14% from its highs). Topix Bank and Real Estates indices continue to suffer from high-beta-itis (-3%) but the Oil & Gas sector is now being dragged into the mess too (-3.2%). JGBs are rallying only modestly (yields lower by 1-2bps) in light of this decent selloff in stocks. JPY is now at its highs of the day testing 100.4 and JGB implied volatility is on the rise once again. All things considered... not good.

The broader TOPIX index is down over 14% fropm its recent highs led by Banks and Real Estate (and Oil & Gas today)...

 

But the more tech-heavy Nikkei 225 is down over 16% and suffering worse today...

 

Charts: Bloomberg