{"id":1481160,"date":"2024-08-02T12:14:31","date_gmt":"2024-08-02T16:14:31","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1481160"},"modified":"2024-08-02T12:14:31","modified_gmt":"2024-08-02T16:14:31","slug":"its-a-disaster-japanese-stocks-suffer-biggest-point-drop-since-black-monday","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/its-a-disaster-japanese-stocks-suffer-biggest-point-drop-since-black-monday\/1481160\/","title":{"rendered":"“It’s A Disaster” – Japanese Stocks Suffer Biggest Point Drop Since Black Monday"},"content":{"rendered":"

“It’s A Disaster” – Japanese Stocks Suffer Biggest Point Drop Since Black Monday<\/span><\/p>\n

\n

We warned yesterday<\/a> that the BoJ has boxed itself into a corner – forced to decide between a crashing currency or a crashing stock market – and overnight it appears traders put policymakers to the test to see what their reaction function might be.<\/p>\n

Yen strength exacerbated an ugly US session and dragged Japanese stocks down further overnight as Japan\u2019s Topix Index entered a technical\u00a0correction\u00a0in its worst two-day rout since 2011<\/strong>…<\/p>\n

\u201cThe recent strengthening of the Japanese yen coupled with tech sector weakness is poised to significantly impact the Asian stock market,\u201d<\/strong> said\u00a0Manish Bhargava, a fund manager at Straits Investment Holdings in Singapore. <\/em><\/p>\n

\u201cGiven the substantial weight of tech stocks in Asian indices, disappointing results from tech giants could trigger a broader market downturn in Asian markets.\u201d<\/em><\/p>\n

So which will the policymakers choose to save?<\/p>\n

<\/a><\/p>\n

Source: Bloomberg<\/em><\/p>\n

Nicholas Smith, Japan equity strategist at CLSA, said, “I think markets globally are having a headless chicken moment,”<\/strong><\/em> with investors excessively worried about the change in currency rates.<\/p>\n

“Stocks getting hit hardest are the ones that surged this year,” he said.<\/em><\/p>\n

Japan’s benchmark Nikkei Stock Average on Friday recorded the second biggest daily drop in its history,<\/strong> as stocks extended losses following a sell-off in New York overnight.<\/p>\n

The index plunged to 35,909.70, down 2,216.63 points, or 5.81%, marking its lowest close since Jan. 26.
\n\u00a0
\nFriday’s decline was the second largest in the index’s history after the Black Monday crash of October 1987,<\/strong> when global markets sank and the index cratered by 3,836.48 points.<\/p>\n

<\/a><\/p>\n

\u201cI didn\u2019t expect stocks to fall this much – it\u2019s a disaster,\u201d <\/strong><\/em>said\u00a0Kiyoshi Ishigane, chief fund manager at Mitsubishi UFJ Asset Management Co. in Tokyo.<\/p>\n

\u201cThis might be temporary, but Japanese stocks are in their worst situation.\u201d<\/em><\/p>\n

Once the main drivers of the market\u2019s ascent, foreign investors sold net \u00a51.56 trillion Japanese cash equities and futures combined in the week that ended July 26<\/strong>, according to data from Japan Exchange Group.<\/p>\n

<\/a><\/p>\n

“Speculative players are expanding a lot of their short positions in Japanese equities this morning, especially in the futures market, and they are buying U.S. equities,” said Yoshitaka Suda, a quantitative strategist at Nomura Securities.<\/p>\n

“The magnitude of macro hedge funds shorting Japanese equities is shocking.” <\/strong><\/em><\/p>\n

He said macro hedge funds were net selling Japanese equities and net buying U.S. ones because “where earnings are concerned, U.S. equities look better able to ride out a global economic downturn, whereas Japanese equities are more cyclical.”<\/p>\n

The question is – how much more pain will policymakers allow before they step in (contrary-wise to their recent interventions) to save the market?<\/p>\n

Stocks it is:<\/p>\n

*SUZUKI: STOCKS ARE IMPACTED BY YIELDS, FX
\n*SUZUKI: WILL CONTINUE TO MONITOR FX MARKET MOVES<\/p>\n

The only thing people hate more than a collapsing currency is a collapsing stock portfolio https:\/\/t.co\/CHNOMlXcHT<\/a><\/p>\n

\u2014 zerohedge (@zerohedge) August 2, 2024<\/a>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nFri, 08\/02\/2024 – 08:14<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/its-disaster-japanese-stocks-suffer-biggest-point-drop-black-monday<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

“It’s A Disaster” – Japanese Stocks Suffer Biggest Point Drop Since Black Monday We warned yesterday that the BoJ has boxed itself into a corner…<\/p>\n","protected":false},"author":0,"featured_media":1481161,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1481160","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1481160","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1481160"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1481160\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1481161"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1481160"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1481160"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1481160"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}