Japanese Stocks Tumble – Down 10% In 2014 Following Record Low China Services PMI

USDJPY opened the evening under 102 with JPY holding its losses until aroun 1700ET when it broke back above the crucial level. S&P futures and USDJPY recoupled for a few hours but are now decoupling faster than the Seahawks and Broncos (S&P -1pt, USDJPY +30 pips). The catalyst for the disconnect (which Japan’s Nikkei is also following) was weakness in Chinese data. Following Aussie PMI’s lowest print in 5 months, China’s Services PMI printed at its lowest on record and it sbiggest 3 month slide in 16 months. Japan’s Nikkei 225 is now down 10% in 2014 and 7 of the last 8 days and 20Y JGB yields are testing 9-month lows.

 

China Services PMI at its lowest on record…

 

with the biggest 3-month slide in 16 months…

 

Which triggered a disconnect between stocks and carry…in US futures…

 

and the Japanese stocks are now down 10% on the year….

 

and 20Y yields are testing 9 month lows…

 

Charts: Bloomberg

    



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