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Even Japanese stocks are subject to the law of gravity (who knew?) as a confluence of factors...

Even Japanese stocks are subject to the law of gravity (who knew?) as a confluence of factors sends the Nikkei (EWJ, DXJ) plunging 7.3% on the session (the swing from intraday high to low was ~9%). Yields on JGB 10s (JGBL) spiked above 1% at one point as an already skittish and volatile market was further rattled by what have generally been perceived as hawkish comments out of Ben Bernanke and other Fed officials on Wednesday. Yields pulled back in late trading. Compounding the problem for Japanese stocks was the yen (FXY), which has strengthened some 2% against the dollar to 101.16 most recently. (See also: China HSBC flash PMI shows contraction)
Comments (8)
  • User 353732
    , contributor
    Comments (4788) | Send Message
     
    Japan's stock "market" is just as much an engine of manipulation as any other in the world. It is also just as decoupled from the real economy of ordinary people as the markets in the US, Europe and China.
    23 May 2013, 05:26 AM Reply Like
  • bdy
    , contributor
    Comments (150) | Send Message
     
    about time the yen goes up. long $FXY at 98
    23 May 2013, 05:42 AM Reply Like
  • Tack
    , contributor
    Comments (12770) | Send Message
     
    A 7+% decline in the Nikkei sounds like a calamity until one realizes that it's up almost 16% for the month and 50% YTD... and, that's AFTER the 7% drop.
    23 May 2013, 06:30 AM Reply Like
  • spybreaker
    , contributor
    Comments (235) | Send Message
     
    Dxj is a penny stock.... Pump and dump
    23 May 2013, 07:00 AM Reply Like
  • bfstrog
    , contributor
    Comments (71) | Send Message
     
    "A 7+% decline in the Nikkei sounds like a calamity until one realizes that it's up almost 16% for the month and 50% YTD... and, that's AFTER the 7% drop."

     

    You do realize that bubbles take more than 1 day to unwind right?
    23 May 2013, 07:50 AM Reply Like
  • Rinascimento
    , contributor
    Comments (1029) | Send Message
     
    A 7+% drop!! this from the land of Toyota Way and where quality was perfected? we are OK as long they don't drop our T- bonds
    23 May 2013, 07:57 AM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    watch the JGB´s...that is where the trouble will begin....
    23 May 2013, 08:13 AM Reply Like
  • Rinascimento
    , contributor
    Comments (1029) | Send Message
     
    442002
    JGB's is where trouble will start? you think so? do foreign countries own any of their debt? I thought not but I am getting tired of this ponzi scheme and waiting for its collapse
    23 May 2013, 09:09 AM Reply Like
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