Japanese Stocks Crash At The Open, Volatility Explodes Higher

Asia is open.

And it is not pretty.

The Nikkei is coming off a rough Monday and the problem here is obviously that overseas markets were merely catching up to Wall Street’s Friday selloff. So now, they’ll need to catch up (or I guess catch “down” is better) to the bloodbath that saw the Dow and the S&P plunge 4% to start the week.

 

So here we go and as noted above it’s ugly. Japanese stocks are down more than 4% out of the gate, extending Monday’s sharp declines:

Japan

And vol. is exploding on the heels of the truly epic move in the VIX in the U.S.:

VNKY

Don’t look now, but it looks like the Nikkei just entered a technical correction off its January highs:

Nikkei

Look at that fucking chart. I mean… my God.

“There could also be some unpleasant margin calls coming when you consider the large participation in recent months from Japanese retail investors,” Bloomberg’s Mark Cranfield writes, before warning “that would ratchet up the pain for equity bulls.”

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2 thoughts on “Japanese Stocks Crash At The Open, Volatility Explodes Higher

  1. OK! Now it’s really starting to feel like the dot-crash.era.
    Man, that was exciting – only this time I won’t get so “irrational”.
    Think I might start edging over to the other post.
    The charting is so much better this time around.

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