Japanese Equity Market Outflows Spike To 8 Year High

With The Fed is full 'taper' mode and The ECB hinting, the world is left to rely on Kuroda to single-handedly buy-the-dip in stocks and maintain bond yields at the mandated level. With Japanese stocks fading in the last two weeks (as bond yields spike), it appears the ubiquitous 'hand of god' has disappeared...

And judging by the biggest Japanese equity fund outflows in 8 years, the fear is spreading...

As Bloomberg notes, it appears a single institutional investor likely triggered the largest outflow from the iShares MSCI Japan exchange-traded fund, ticker EWJ, since the depths of the financial crisis.

The benchmark $16.5 billion ETF, which has notched a 9.2 percent return so far this year, was hit by a $759 million withdrawal Thursday, the biggest one-day outflow among U.S.-listed ETFs, and the most since September 2009.

“The volume data show this was likely one big investor, who is unnerved by Japan’s recent shakiness and wants out before it gets worse,” said Eric Balchunas, ETF analyst at Bloomberg Intelligence, referring to Prime Minister Shinzo Abe’s election defeat Sunday that calls into question the economic reform agenda.

Comments

nope-1004 Fri, 07/07/2017 - 12:55 Permalink

The volume data show this was likely one big investor, who is unnerved by Japan’s recent shakiness and wants out before it gets worse,” said Eric Balchunas, ETF analyst at Bloomberg Intelligence,

 Bullshit.  Trying to convince the markets that it's "contained", or just 1 investor.  LMAO.  The outflows are extreme.  Stop lying. 

Let it Go Sat, 07/08/2017 - 06:50 Permalink

The myth promoted by the central banks that a major currency cannot fail is accepted as fact by many people however, the rapid demise of either the yen or the euro is all that will be needed to reveal the truth. When a major currency fails it will remind people everywhere that our system of fiat money is held together only by faith in the system and a prayer.Japan's public debt, which stands at around 250% of its GDP is the highest in the industrialized world. In the future Japan's debt can only be addressed by printing more money and debasing the yen. The article below explores how when Japan crumbles it will be felt across the world. http://brucewilds.blogspot.com/2016/06/the-yen-and-its-failure-to-fail.html