business

Asian stocks plunge; Nikkei falls below 20,000, yen surges

40 Comments

The requested article has expired, and is no longer available. Any related articles, and user comments are shown below.

© Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

©2024 GPlusMedia Inc.

40 Comments
Login to comment

This ride ain't over yet!

8 ( +8 / -0 )

This is due to the recent stimuluses that will pass soon. The yen is no longer seen as a safe haven currency as its diverged too far from gold which it used to keep itself pegged to. There are several other reasons but the virus has exposed a few things about the yen.

-12 ( +5 / -17 )

The yen has strengthened against the pound.

6 ( +7 / -1 )

JJ Jetplane, what the hell are you talking about. The yen is getting stronger against every other major currency. Look at the dollar and the pound. Everybody is to the yen, which in turns is killing the Nikkei, as the yen strengthens the weaker its ability to export becomes!

19 ( +20 / -1 )

There are few things I hate more than a strong yen.

1 ( +6 / -5 )

This is due to the recent stimuluses that will pass soon. The yen is no longer seen as a safe haven currency as its diverged too far from gold which it used to keep itself pegged to. There are several other reasons but the virus has exposed a few things about the yen.

What???

8 ( +9 / -1 )

What MarkX said.

2 ( +2 / -0 )

There are few things I hate more than a strong yen.

Well a strong yen is great for overseas travel, but the timing sucks as many places are closing their borders.

3 ( +4 / -1 )

@MarkX

JJ Jetplane, what the hell are you talking about. The yen is getting stronger against every other major currency. Look at the dollar and the pound. Everybody is to the yen, which in turns is killing the Nikkei, as the yen strengthens the weaker its ability to export becomes!

Do me a favor and look at the correlation over the past 5 to 10 years between other safe havens such as treasury bonds, gold, and the yen. You will see what I mean. Also, pay attention to January trades and prices when people afraid of a global recession began purchasing safe havens. You will see the rise of the yen moving much slower than usual compared to the others.

-7 ( +1 / -8 )

The yen is no longer seen as a safe haven currency as its diverged too far from gold which it used to keep itself pegged to.

The Japanese Yen left the gold standard in 1931, so I doubt that has any effect on anything right now.

11 ( +12 / -1 )

I heard that there is lack of toilet paper because Bank of Japan needs it all for printing new notes so Abe can stimulate us again.

13 ( +15 / -2 )

@MarkX

JJ Jetplane, what the hell are you talking about. The yen is getting stronger against every other major currency. Look at the dollar and the pound. Everybody is to the yen, which in turns is killing the Nikkei, as the yen strengthens the weaker its ability to export becomes!

I agree with you that the stronger yen is like a "perpetual motion" machine which could slowly wind the economy down as Japanese goods become more and more expensive on the international market. I have seen this cycle before in the industry I work in. However I also believe there are more factors at play than what you have written alone and this is a complex scenario.

The markets were overblown and we were in a bubble when this started (including real estate). If this virus is not contained quickly enough resulting in travel restrictions to Japan and in conjunction with that the cancellation of the Olympics many segments (not all segments) of the Japanese economy are going to be eviscerated.

Of course human health is (or should be) the #1 concern of all but in addition to the health of human beings the economy is a very important consideration as it could negatively impact Japan and those of us living here.

I believe when this is all said and done there is going to be a dramatic change in many supply chains (I know one large American company who started this 1 month ago) and this could really be rough on China and the CCP.

Taiwan, Singapore, and Vietnam are looking really good at this point.

1 ( +2 / -1 )

Ah well, if everything is off and I'm stuck indoors, at least the stuff I buy online from overseas will be cheaper.

0 ( +1 / -1 )

I know one large American company who started this 1 month ago) and this could really be rough on China and the CCP.

WIth the exception of oil, cobalt and some other materials, if you go back about 40 years before the "globalism" trend started, the US pretty much supplied itself. China was undeveloped, and Japan had just started what China is doing today.

0 ( +2 / -2 )

the main reason for the fall in oil is because Russia and OPEC can agree on oil reduction, effective Saudi Arabi Russia are starting another piece war, Russia is dissatisfied with having to cut production to the benefit of AMerican shale oil gas, which is more expensive to produce. This is going to get worse before it gets better and believe me America shale gas industry isn't going to get out of this unscathed.

5 ( +5 / -0 )

Tokyo-Engr said "I believe when this is all said and done there is going to be a dramatic change in many supply chains (I know one large American company who started this 1 month ago) and this could really be rough on China and the CCP."

Would you bet with your head on this ? In fact, when crisis like epidemics happens, only China has the capacity to get it under control in short period of time. People now see with their own naked eyes who is the best world supplier.

-5 ( +1 / -6 )

@Longtermer....this is very true.

The use of China to cut wages was started back in the 90's when China was granted the so called "Most favored nation" status which was made permanent in the early 2000's. The use of China in many supply chains accelerated very rapidly (exponentially) and other countries soon followed. This started as a means to get cheap labor and then it has changed due to everyone wanting access to the huge Chinese growing middle class. Either way this was a function of greed. During this crisis the U.S. is now at a point where even some prescriptions may be very difficult to fill due to the fact that the drugs themselves or the raw materials come from China. The auto industry is heavily impacted as is the electronics industry.

In the end those in positions of power or authority are not necessarily looking out for all of our interests. In the U.S. they spend more time looking out for those that can provide them with the most election campaign cash or other frills or mechanisms of enrichment. In other countries this manifests in different ways.

Regardless things could get very interesting for those of us living here in Japan (and elsewhere for that matter)

5 ( +5 / -0 )

Well a strong yen is great for overseas travel, but the timing sucks as many places are closing their borders.

but overseas travel doesn't do anything for the J economy, also making Chinese travelers to Japan spend less since the yen has risen by about 8% in the last month. Chinese tourism accounted for about 4 trillion to the J economy last year. Japan is headed for a recession next quarter.

5 ( +6 / -1 )

@Akie - I am not sure the meaning of your question but if you mean would I literally bet my head - of course not......but I am seeing this start to happen in one particular industry.

You are correct this change cannot be made instantly (just not enough capacity outside of China to do so) but I would expect some gradual changes to occur.

3 ( +3 / -0 )

Would you bet with your head on this ? In fact, when crisis like epidemics happens, only China has the capacity to get it under control in short period of time.

This health emergency started in China and it has caused trouble across the globe.

China’s leadership should be held accountable and must do everything within their power to make sure this doesn’t happen again.

2 ( +3 / -1 )

The Yen has traditionally been seen as a safe haven currency in times of turmoil and crises. The Yen has shot up this morning to the 102 yen/dollar range. But Japan does not seem to be doing much in the way of testing for the virus compared to some other countries. If/when the true state of play in this country is revealed, I think the Yen will be massively sold. Myself, my funds are mostly in Swiss francs, with a portion in US Dollars. I do not want to hold the Yen.

1 ( +2 / -1 )

Jimizo, if you simply blame China for what happened inside of China, then you should also appreciate what China does to save the world from poverty. Do you know the world you live in owes China a lot ? You pay less because China charge it less.

-6 ( +2 / -8 )

Jimizo, if you simply blame China for what happened inside of China

Yes, I blame China for what happened in China. By the way, I’ve defended Chinese people from some of the uglier posts on this forum.

The fact remains - the Chinese leadership must be blamed for this and pressured to make sure they don’t inflict something like this on the planet again.

Get your house in order. People are dying because of this.

8 ( +9 / -1 )

At least yen is surging. Maybe Japan can buy up all the properties in NYC again, like they did back in the good old days lol

1 ( +6 / -5 )

White collar criminals at it again. First Oil, Stocks and now Market Exchange manipulation. The only way to stop this is have all the investors quit panicking and leave their money where it is and let that one idiot pay the price.

2 ( +2 / -0 )

By good ole days you mean the 80's? The yen was somewhere like 250yen per 1 USD.

A strong yen is the last thing Japan wants.

7 ( +9 / -2 )

Congratulations everyone.

We have made it, we proved that we can destroy the economy and society because of a new flu virus.

I wonder how many people will die from a probable corona-panic induced world recession.

It will probably be higher than the deaths from the actual virus.

1 ( +2 / -1 )

Other than this, all good. Carry on.

-1 ( +0 / -1 )

but overseas travel doesn't do anything for the J economy,

Yah, but that wasn't the point.

0 ( +1 / -1 )

I've said for years - including on this forum - that the globalist embrace of China would eventually exact a steep cost on working people in the West and Japan. Putting a huge part of the global supply chain in a semi-developed communist dictatorship is, hello, just a little risky? Like, for all of us?

I also said way back that Japan's hike in the consumption tax was a darkly dangerous move. Today it's the main reason we're heading into recession. So rescind the tax and forget about shoveling more taxpayer money to shaky businesses. There's a serious labor shortage anyway, so the workers wont have to worry about employment.

5 ( +6 / -1 )

@Bugle Boy of Company BToday 

Well a strong yen is great for overseas travel, but the timing sucks as many places are closing their borders.

I know you're joking, but, if you were serious, you could always buy the foreign currency now and travel with it later.

2 ( +2 / -0 )

With the yen at 102 to the dollar, means the exchange house is below 1.00 US dollar. That's hard on the folks who get paid in US dollars and have to exchange that money to yen and with the 10% across the board tax makes it tougher to visit as it costs more, yet the prices will not go down.

2 ( +2 / -0 )

But somebody is making a killing with all of this selling. We always hear that thee are losses when some market correction like this takes place. But I always want to know who is making money off of this?

2 ( +2 / -0 )

The latest jolt came from Saudi Arabia, Russia and other oil producers arguing over how much to cut output to prop up prices.

Crude Oil Prices Today

https://oilprice.com/

-1 ( +0 / -1 )

I know you're joking, but, if you were serious, you could always buy the foreign currency now and travel with it later.

Not joking, but not planning to travel at the moment either, so.. But good point about buying currency now. I remember when it was 80 yen to the dollar. Fun times!

0 ( +0 / -0 )

Well Markets are down... but the VIX is down.

Also take note of the forthcoming Futures/Options Last Trading date :

https://www.jpx.co.jp/english/derivatives/rules/last-trading-day/index.html

1 ( +1 / -0 )

The latest jolt came from Saudi Arabia, Russia and other oil producers arguing over how much to cut output to prop up prices.

they're not arguing they gone into a full price war, Russia was complaining that it was forced to hold back production to prop up prices, all to the benefit of US shale oil/gas producers which cost more to process.

Russia has basically refused to cut production and told its producers to pump as much as they like, so Saudi Arabia had to respond to keep its market share. The end result shale producers in America will start to lose bleed money forcing more out of the market. Yes Saudi Arabia tried it before but this time around youve got Russia in on it also. US producers break even price is around $49~55 barrell, Russia is around $40~44 Saudi Arabia even cheaper. Putin is peed that Trump is using energy embargos to hurt its sales of gas to the EU, so now hes responding by hurting US producers.

1 ( +1 / -0 )

Must say I'm glad I took my hit early on. I would be sick if I was still holding. I'm waiting this one out. Kind of hoping for Nikkei going to 15,000.

0 ( +0 / -0 )

Nikkei isn't the only index falling!

Stock market news live: Oil crashes, stock futures crater on coronavirus, crude war fears

https://www.yahoo.com/finance/news/stock-market-news-live-stock-oil-futures-crater-on-coronavirus-crude-war-fears-224253935.html

I would not want to be a first-term incompetent president with no answers but only lies for the economy and the coronavirus.

0 ( +1 / -1 )

Login to leave a comment

Facebook users

Use your Facebook account to login or register with JapanToday. By doing so, you will also receive an email inviting you to receive our news alerts.

Facebook Connect

Login with your JapanToday account

User registration

Articles, Offers & Useful Resources

A mix of what's trending on our other sites