The craziness in the Japanese market continues. Today has been another wild day.
In Thursday trading, the Nikkei collapsed another 5%. You might quibble with the terminology, but basically Japan has been crashing, as it fell 7% last Thursday, and has been very weak since then. Of course, this comes following an incredible surged that started last autumn, as Japan has embarked on a shock treatment course of monetary stimulus known as “Abenomics” which has enjuiced the stock market and caused the yen to dive.
So things had been plunging today, and then in the last hour, Japan has gone vertical, with futures surging about 400 points.
The culprit? A Reuters report about Japan’s big pension fund being able to move into equities. Previously it had just been in JGBs (Japanese Government Bonds)
For such a huge market, this kind of volatility is stunning.
Meanwhile, this turnaround has lifted markets around the world, although for the most part, other equity markets haven’t been too moved by the ructions in Japan.
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