Kospi, Nikkei Fall As Market Ponders Whether They’ll Be A Tomorrow Or Not

Ok, so just a quick update as everyone tries to sort out exactly what the hell happened a couple of hours ago when the second-most unhinged leader on the planet decided to fire a missile over Japan.

Bloomberg notes that Japan CDS is leaking wider:

• JAPAN CDS 1-2BPS WIDER AT 43.5BPS AFTER NORTH KOREA MISSILE

S&P futs have rebounded a bit, but are still down notably and it’s largely the same story for USDJPY.

“Typically a gap lower in the Asian session for S&P 500 e-mini futures is met by short-term traders willing to take the other side for a quick turnaround — that may not be the case on Tuesday,” Bloomberg’s Mark Cranfield writes, adding that with “the Labor Day holiday approaching, the U.S. government at risk of a shutdown and North Korea firing a bunch of missiles, U.S. equity bulls are living on borrowed time.”

10Y yields fell below 2.12 – support’s at 2.10:

The Kospi fell right out of the gate:

So did the Nikkei:

And the won’s down sharply:

“Now clap for me bitchez”…

Stay tuned to Trump’s Twitter feed to find out if there will be a tomorrow or not.

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Wow, can't imagine getting this text: an alert sent to mobile phones from the Japanese government read: 'Missile launched, missile launched' pic.twitter.com/zcCvnoc48e

— Michael P. Regan (@Reganonymous) August 29, 2017