540 Point Nikkei 'Olympic-Hope' Spike Fades On Japanese Data 'Reality' Miss

An exuberant Japanese investing public bid the open of equity trading in their oh so-penny-stock-like prestigious Nikkei 225 stock index by 540 points from Friday’s close. That these 4% rips in major global stock markets have become ubiquitous is now no surprise to anyone but, sadly, for Abenomics supporters the world over, final Q2 GDP missed expectations modestly (+0.9% vs +1.0% exp.) with the 3rd worst trade balance (on a BoP basis ) ever not helping matters. Is that GDP hit enough to maintain Abe’s decision to hike taxes? Maybe, maybe not. In thge hour since the data hit, the Nikkei has collapsed back 220 points and USDJPY, having surged up over 100.00 into the GDP print, is fading lower (stronger JPY). The rest of Asia is quiet for now, gold and Treasury bond prices are very slightly lower and amid very thin trading in S&P futures, equities are up 3 points.

 

Japanese data was a disappointment…with GDP missing…

 

and the 3rd worst trade balance in history…

 

As is clear from the FX…

 

and equity markets…

 

Charts: Bloomberg

    



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