Abenomics Officially Leads Japan Into A Triple-Dip Recession - Weather Blamed; Nikkei Drops 600 Points, Back Below 17,000

UPDATE: The crazy-talk is out already...

  • AMARI: ABENOMICS HASN'T FAILED
  • SUGA: INVENTORIES, WEATHER, CONSUMER MINDSET CAUSED GDP FALL

The Nikkei 225 has now dropped 600 points from the post-GDP highs and is back below 17,000

 

As the BoJ pump fades...

 

and S&P futures are weak...

 

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Japanese GDP fell for the 2nd quarter in a row making it official - as we warned a month ago - that Japan has entered a triple-dip recession. Againstr hope-strewn expectations that the rebound from a sales-tax-driven slump would create a magical 2.2% (annualized) expansion, Japanese GDP slumped 1.6% in Q3 - missing by the most since March 2011. So no tax increase... and thus fiscal responsibility goes out the window. Abe dissolves government and bails on another failure? The initial kneejerk reaction sent USDJPY surging back over 117.00 (and NKY followed) but that has quickly reversed and NKY futures are 600 off their highs (and S&P futures are back near last Monday's lows).

 

Abenomics - FTMFW!!!

 

Missing by the most in 42 months!!

 

The sell-side "nailed it"

 

The full breakdown...

 

Which left this reaction...

 

and S&P futures tumbled

 

We can't wait for the spin... buy Japanese satocks because they are in recession which means so much more pent-up demand when Abenomics really works? Oh and by the way... Kuroda just fired his biggest bazooka ever so don't expect any monetary policy reaction to this.

 

Charts: Bloomberg