Nikkei enters bear market as stocks dive 6.35%


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Low SQ settlement for Nikkei tomorrow; Fierce selling and stop-losses for SQ.

0 ( +1 / -1 )

little better than j-posters' expecations...make Abenomics fans feel happy (Media only?)

1 ( +1 / -0 )

A lot of people will be hurting today....... The Mrs Watannabes, the FX dealers and those carry traders who took out Yen loans.

Could unwind much more tonight, although I still think this one is just a practice run for the big Nikkei collapse and Yen strengthening this late summer/autumn.

I could be wrong!

-1 ( +3 / -4 )

It was fun while it lasted, Abe-san. For a while there you actually got to pretend you could sit and the adult table.

1 ( +3 / -2 )

Interesting quote I read from an analyst today: "A few more weeks like this and Abe will have to start working on his resume".

1 ( +3 / -2 )

Okay ... the dollar is retreating from its 100 yen to the $1 level. Prices on many products shot up when the 100 level was attained . Now, are these prices going to drop to their previous levels? We all know the answer to that: No. Once they go up ... they usually stay up ... awaiting the next round of price increases.

It appears that Abenomics is screwing up everything around.

Is a hyperinflation side effect in the making? I sure hope not.

Abenomics ... that is gradually becoming a profane word ...

1 ( +2 / -1 )

Looks like the market is giving Abenomics the thumbs down....

1 ( +3 / -2 )

Idiots are screwing with my money!

4 ( +4 / -0 )

“We have seen such wild fluctuations lately that few investors want to press on with buying,” said Hirokazu Kabeya, senior strategist at Daiwa Securities.

“It’s a kind of a chicken-and-egg situation—volatile markets keep buyers away and the absence of buyers leads to market volatility. We are trapped in a negative spiral right now.”

Surely absence of buyers leads to market declines?

0 ( +1 / -1 )

so both Nikkei and Yen were in better position before Abe and Kuroda announced ultra easy monetary policy under Abenomics ?

1 ( +2 / -1 )

Global markets including the Nikkei225 and the USD/yen peaked on May22nd, the day Bernanke opened his mouth and suggested the end of QE3, so rather than blame Abe who has only been in office for only 6 months its more apt to blame the FED. The All Ordinaries and the Straits Times dipped into negative territory today with hedge funds dumping asian assets like no tomorrow; the Nikkei 225 was the worst performer but still up 20% year to date. The FED meeting next week is the next "fear event", heaven help the markets if there is any further suggestion of a close to QE3.

A more realistic measure of Abenomics effectiveness is corporate earnings over the next 24 months and if they don't improve then I will join Kyle Bass and buy JGB credit default swaps and make a bid on a deserted island far away from Japan.

2 ( +5 / -3 )

The Abenomics cynics dismissed the Nikkei when it was climbing, calling it hot air. Now that it's crashing, they're pointing to it as solid proof they were right. Hello?

The real economy is still holding up. 3.5 percent growth ain't bad.

-3 ( +2 / -5 )

randoman is right the FED "tapering" talk was the main culprit for markets sell-off.

Japan will see 2 to 3 years of likely strong GDP from Abenomics with record earnings from exporters.

-3 ( +1 / -4 )

JeffLeeJun. 13, 2013 - 08:37PM JST

The real economy is still holding up. 3.5 percent growth ain't bad.

No the REAL economy isn't holding up 3.5% growth. The increase in GDP was because exporters made more profit when repatriating their overseas monies into yen, because the Yen had weakened by 20% on the FX markets. The actual volume of sales had not increased.

On Monday, statistics showed that capital spending by Japanese firms in the first quarter decreased by 0.7 percent, , highlighting that the export boom has not yet fed through to the real economy.

mr_jgbJun. 13, 2013 - 08:48PM JST

Japan will see 2 to 3 years of likely strong GDP from Abenomics with record earnings from exporters.

Japan will see 6 months of a quantitive / qualitive sugar high because of the BOJ and then we will be back to where we were on November 2012. The domestic economy will come to an abrupt halt by April 2014 because of stagflation and the increase in taxation.

1 ( +7 / -6 )

Dog, good post. Except, I think the Nikkei will fall below where it was Nov 2012. I don't think the economy will come to a halt, but it may well ground down to a snail's pace. Best to minimize one's bank exposure. Diversify and internationalize BEFORE the capital controls come.

1 ( +3 / -2 )

Japanese exporters are smart in not wanting to increase foreign market share, but maintain same price and sales volume. In this way weak Yen will not provoke currency war & protectionism against Japan, but foreign sales earnings translated to Yen will be a very big booster to bottom line profits.

-3 ( +0 / -3 )

With perfect market timing, you could have made 35% on the round trip in the Nikkei 225 over the past 2 months. However, I don't believe this is what Abe and Kuroda had in mind when they initiated Abenomics and QE:

1 ( +1 / -0 )

However, I don't believe this is what Abe and Kuroda had in mind when they initiated Abenomics and QE:

The world financial institutions are all pre programmed and computerized. The world market moves with no emotion and moral. That's a new reality and it is very sad.

0 ( +0 / -0 )

Abemomics is no more than the crony politicians giving favours to their friends in Japan Inc Well,it's gonna fail-BIG TIME! When interest rates on Abe's loans become due then the Japanese QE to date will seem like chump change!

And the yen will become worthless .....

-1 ( +0 / -1 )

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