Japanese Stocks In Freefall - TOPIX Plunges Almost 5% To 4-Month Lows

Submitted by Tyler Durden on 02/03/2014 23:46 -0500

Despite the hope-driven exuberance exhibited immediately post the Abe/Kuroda show, the USDJPY-pumping stock-momentum fest has ended - abruptly. Japan's Nikkei 225 has lost all its gains and is now trading below US day-session lows (3-month lows) but it is the broader TOPIX index (more akin to the S&P 500) that is collapsing. Down almost 5% on the day (its biggest drop since the May collapse), the TOPIX is at 4-month lows. The TOPIX Real Estate index just hit a bear-market - down 20% from Dec 31st highs. Japanese sell-side shops are in full panic desparation mode as"suggestions" that a sub-14,000 Nikkei will prompt an acceleration of Japan's QQE money-printing idiocy. This is getting ugly fast.

TOPIX collapses to 4-month lows...

As Bloomberg notes, the sell-side is in full panic mode...

Japan’s central bank will probably boost purchases of ETFs as early as this month if Nikkei 225 drops to about 14,000, Hidenao Miyajima, chief strategist at Parnassus Investment Strategies in Tokyo, says in interview.

But this won't help as the ramp in USDJPY is not helping...

and The TOPIX Real Estate Index is in Bear market territory - down 20% from Dec 31st highs... and 6 month lows...

Charts: Bloomberg

Abe/Kuroda Double-Team Sends Japan Bonds/Stocks To May 2013 Levels

Submitted by Tyler Durden on 02/03/2014 20:45 -0500

Bond

Japan

Nikkei

With Japanese stocks down 13.6% from their 12/31 highs, the big guns just hit the tape to try to save the day:

*ABE:BOJ WILL MAKE APPROPRIATE DECISION ON EXIT STRATEGY
*ABE: NOT EASY TO CHANGE 'DEFLATIONARY MIND'
*KURODA: BOJ CAN CONDUCT APPROPRIATE EXIT POLICY AS NEEDED
*KURODA: BOJ EASING HAS HAD INTENDED IMPACT SO FAR

Following Amari's earlier "markets are over-reacting" jawboning, so far this is having little to no effect. USDJPY is actually fading back lower and perhaps stunningly Japanese 20Y bond yields and stocks are back at the same levels seen in May 2013 (1 month after the BoJ unveiled QQE). Time for some Depends Mr. Abe.

Oops...