Panic selling in Japan brings casualties


Down more than 11% in early trading, the Nikkei shed 9.6% to plunge to the 8,000-level (closing at 8,276). N225 futures barely managed to preserve that level, dropping 1,180 points to 8,020.

Yet again, the JP financial press, citing a Nikko/Citi strategist, points to (preemptive) selling by hedgies. Combined de-leveraging and de-risking by HFs is delivering a crushing blow. The Nikkei is now down over 50% since its peak last year, falling 27% in just this month of October.

A marginal life insurer, Yamato and the REIT New City Residence both filed for bankruptcy. This spooked today’s market further, exacerbating uncertainty and eroding confidence even more. All eyes on America and the G7 talks.

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