March 2nd - Japanese Markets Plunging

Discussion in 'Trading' started by ByLoSellHi, Mar 1, 2007.

  1. Japanese Stocks Drop, Head for the Worst Week in 8 Months

    By Patrick Rial

    March 2 (Bloomberg) --
    Japanese stocks dropped, set to complete their worst week in eight months, after losses by U.S. shares extended a global equity selloff. Exporters such as Sony Corp. also fell after the yen strengthened against the dollar.

    ``The chain reaction of falling stocks worldwide looks to be continuing,'' said Soichiro Monji, who helps oversee about $47 billion at Daiwa SB Investments Ltd. in Tokyo. ``Investors are now taking steps to avoid risk.''

    The Nikkei 225 Stock Average fell 243.46, or 1.4 percent, to 17,210.38 as of 9:28 a.m. in Tokyo. The broader Topix index lost 18.61, or 1.1 percent, to 1721.50.

    The Nikkei dropped 5.3 percent and the Topix declined 5.1 percent so far this week, heading for the biggest weekly slides since a 6.7 percent drop in the five days ended June 9, 2006.

    Some retailers such as Isetan Co. gained after the government said Japan's household spending rose for the first time in a year and the jobless rate fell.

    Sony, maker of the PlayStation 3 game console, dropped 160 yen, or 2.6 percent, to 6,010. Canon Inc., the world's largest seller of digital cameras, declined 50 yen, or 0.8 percent, to 6,350. Toyota Motor Corp., Asia's No. 1 automaker, slid 120 yen, or 1.5 percent, to 7,740.

    The rout in stock markets worldwide started in China on Feb. 27 amid concern the government of the fastest-growing major economy will tighten controls on investment. Declines were accentuated as U.S. economic data pointed to slowing growth in the world's biggest economy.

    Continued Selloff

    In the U.S. the Dow Jones Industrial Average has fallen 3.2 percent in the last three sessions. Stocks across Europe and Asia dropped for a third day, extending their worst slump in four years and wiping out more than $1.5 trillion in global market value.

    The yen climbed to as high as 116.97 against the dollar yesterday, the strongest since Dec. 13. Against the euro, the yen rose as high as 154.55, a level not seen since January 10. It recently traded at 117.76 per dollar and 155.13 versus the euro.

    A stronger yen reduces the value of Japanese companies' overseas sales when converted into local currency and makes their products less competitive.

    Nikkei futures expiring in March slipped 0.3 percent to 17,340 in Osaka and fell 0.3 percent to 17,340 in Singapore.
  2. Um not really

    SSEC is gonna surge to new highs
  3. I always thought "plunging" in market terms might mean 3-5 -10% or more in the red ... so far this is not that ...
  4. \

    Look at he Nikkei for the week.
  5. Um unlike the american indexes it isn't unusual for the nikkei to go up/down 1-3% in a single day. The trend is very rebust and it would take a massive selling day (15% or more) to disrupt it.
  6. S2007S


    These other markets around the world see 10% corrections like nothing, the Dow hasnt seen a 10% correction in quite sometime. Many people have claimed this market a BULL MARKET, IF THIS IS THE CASE then these markets NEED a 10% correction to keep moving higher.
  7. Hmmm.....what does the DOW and NAS do when Nike.....LOL falls more than 1%

    Yes, you are correct goes it goes down. Maybe there will be consistancy?
  8. S2007S


    this is from an article I found:

    With investors now taking risk into account, the question now becomes whether the long-term market rally can continue - or whether it's heading for a full-fledged bull market correction. In bull markets, a correction represents a 10 percent drop in stock prices. The current bull market dates from Oct. 9, 2002, and has yet to experience a correction. Indeed, the Dow had gone a record 949 straight sessions - nearly four years - without a one-day drop of 2 percent.
  9. The consistent thing lately is that U.S. markets have been reacting to Asian markets.

    So, the fall in the Nikkei doesn't bode well for tomorrow.

    The Nikkei is down 5% this week. The Dow is down 3.5%.

    It's rather semantical whether 5% constitutes a plunge. For a one week frame, I contend it's bad anyway one slices it.
  10. duard


    Remember in 2000 all the dip buyers. I remember an older well off individual doing the Pavlovian buying of HHH (Internet ETF) which for several years yielded big payoffs. He lost 100k, then another 100k, then another 100k..... It wasn't until the steaming pile after 9/11 had blown out every last buyer that the selling finally reached capitulation.

    My guess we're just getting started. As the bounces get sold then when the new highs are never manifest then selling really takes hold. Consumers balk at purchasing as fear sets in. Housing slowdown hits home, blah, blah, blah. I say we're in for a rolling 9 month correction which just started. There'll be plenty of time for long and short trades. The good news is volatility is here to stay for a year or two.


    Good luck. I hope those that have had success keep their cash now that the market has changed character.
    #10     Mar 1, 2007