Japan’s Epic Stock Rally Collapses In $600 Billion Wipeout

$600 billion. That's how much value disappeared into thin air in Japan over the past 48 hours, during which local equities plunged in their worst two-day rout since 3.11. The Topix dove more than 6% on Friday, as markets adjusted to a new reality defined by a hawkish (or relatively hawkish, anyway) Bank of Japan and a Fed that's on the brink of cutting rates. As the figure shows, the two-session decline was larger than any two-day loss logged during the early days of the pandemic. The Nikke

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2 thoughts on “Japan’s Epic Stock Rally Collapses In $600 Billion Wipeout”

Or just another rotation. Too many of the remaining active managers had piled into Japan, partly because of the “anywhere but China” rotation into India and then Japan. (Especially for dedicated Asia-Pacific portfolios with 100% invested mandates.)

It was not just tech being sold. Every share on my Japan watch board was down more than 5% last night except for Canon at -4.75%

No one likes anything anymore!!

So weird to reflect that the quantum lost by the Japanese market is about the same as just one of the stocks over on the S and P during the same period.