Things are getting a little out of hand in Asia once again. China's Shanghai Composite is down 3.7% at the break for its biggest 2-day drop in almost 4 years (-8.9%) and Japan's Nikkei 225, after staging a solid come-back has collapsed 450 points from its highs of the early session smashing below the US day-session lows. Chinese repo is very noisy but 7-day is around 160bps higher for now at 9.2% (having traded at 17% at one point - suggesting 'specific' injections have been made). The carry unwinds continue as USDJPY and Nikkei track each other tick for tick. S&P futures are not going unpunished (-4.5 from the close and -12 from after-hours highs). What's Chinese for 'Dallas Fed's Fisher' or Japanese for 'Hilsenrath'?
Nikkei 225 collapsed below US day-session lows after staging a modest recovery early in the session...
China's worst 2 days in almost 4 years