JPY Plunges To 6-Year Lows, Nikkei Tops 16,000 As Japanese Deficit Runs 41st Month In A Row

For the 41st month in a row, the Japanese Trade Balance is in deficit (around JPY1 trillion). Of course, the fact that exports fell 1.3% (but but devalued currency means competitive?) means nothing as all that really matters is the collapsing JPY (now at 108.60) at its weakest against the USD in 6 years. That can mean only one thing - a surging Japanese stock market - as the Nikkei breaks 16,000. What is odd - just as in the US - is the rising equity index (no doubt helped by Japanese pension funds buying JPY393billion in Q2) against a backdrop of plunging indivdidual stocks. Sony is limit down (as we explained earlier) with offers outnumbering bids 8-to-1. And that's Japan...

41st month in a row of trade deficits... no J-Curve in sight

 

The JPY is collapsing...

 

Japanese stocks are surging...

  • *JAPAN PENSION FUNDS BUY NET 393B YEN JPN STOCKS APRIL-JUNE QTR

But Sony is in utter freefall:

  • *SONY YESTERDAY CLOSED AT 2,123 YEN IN TOKYO
  • *SONY OFFERED LOWER AT 1,623 YEN IN TOKYO PRE-MARKET
  • *SONY UNTRADED AT OPEN IN TOKYO, SET TO FALL
  • *SONY SELL OFFERS OUTNUMBER BIDS 8 TO 1
  • SONY FALLS AS MUCH AS 12% IN TOKYO, MOST SINCE NOV. 2013

 

And then there's this odd regime shift?

 

 

Charts: Bloomberg