China Repo Spikes Most In 5-Month Highs; Japanese Stocks Soar As TEPCO Finds Another Leak

While the Dow has quietly added over 200 points in the last 2 days, the potential for Kuroda and Abe to embark on QQQE has sent Japan's Nikkei 225 up a magnificently suitable (given the utterly dismal macro data from yesterday) 700 points in the same period. Somehow this jerk higher to near the big collapse-day highs in May makes sense to someone (as TEPCO announces yet another leak). Meanwhile, across the sea, Chinese money-markets are exploding. The last 2 days have seen a combination of no operations yesterday and a big lift in rates today which spiked overnight repo-rates to 5.32% - the highest in 5 months if it closed there - as clearly smaller banks are desperate for liquidity. FX markets are seeing weakness continue in Indonesia, Thailand, and the Philippines. So, all-in-all, total chaos...

 

TEPCO first  - because that is just a fucking shambles:

  • *TEPCO FINDS NEW LEAK FROM FUKUSHIMA FLANGE-TYPE TANK: KYODO
  • *TEPCO SAYS TANK WATER LEAK ABOUT A DROP IN 4 SECONDS
  • *TEPCO PLANS TO PAY PART OF DECONTAMINATION COSTS, KYODO REPORTS

 

But Japanese stocks are soaring... makes perfect sense after last night's total #fail for Abenomics... USDJPY is back over 100... so that must be good (Venezuela here we come)...

 

as The NKY plays catch-up to The Dow once again...

 

And while the world is awash in liquidity, the locals in China are getting restless - as overnight repo sees the bigggest 2-day spike in 5 months on the back of a non-reverse-repo day and modest tightening by the PBOC on its rates...

From MNI,

China's benchmark seven-day bond repurchase agreement opened at 5.2 percent on Friday morning, up nearly a full percentage point from its closing quote of 4.3 percent Thursday, after the central bank drained liquidity from the markets for the week.

High opening quotes are not always indicative of wider market sentiment, as traders say some smaller banks occasionally find themselves desperate for cash, producing outlier quotes. But the second quote also came in at 5.2 percent, which might suggest a wider trend.

 

Charts: Bloomberg