In our preview of last week's BOJ we refrained from giving details and merely shared a candid assessment of what we thought the result would be:
BOJ preview: whatever is the dumbest possible thing that can happen, is what will happen. 100% guaranteed
— zerohedge (@zerohedge) July 30, 2024
And we were right, because by deciding to hike rates into an economic showdown, the BOJ - which as we noted last week "changed the rules" again - has unleashed a financial apocalypse by creating a positive feedback loop that culminates with a deflationary collapse of all assets (as the bank now goalseeks a surge in the yen and thus deflation and economic devastation) which has led to not only to the Nikkei promptly entering a bear market from its all time high hit just 3 weeks ago and wiping out all of its year to day gains, not to mention collapsing 15% since last week's BOJ meeting which we knew would be a disaster...
... which has also just suffered its biggest two-day drop in history, surpassing Black Monday...
... but also the halt of trading of both its peer, the Topix...
- *CIRCUIT BREAKER TRIGGERED FOR TOPIX INDEX
... as it too enters a bear market...
- *JAPAN'S TOPIX INDEX FALLS 20% FROM JULY PEAK
... and the entire Japanese bond market:
- *CIRCUIT BREAKER TRIGGERED FOR JAPAN GOVT BOND FUTURES
Meanwhile, among today's freefalling stocks are such names as the iconic Nintendo...
- *NASDAQ 100 FUTURES DROP AS MUCH AS 2%
...and perhaps something more troubling, is that Japan's megabanks are in freefall, starting with Mizuho...
- *MIZUHO SHARES FALL AS MUCH AS 12%, MOST SINCE MARCH 2020
and ending with Japan's largest bank, its JPMorgan, if you will, which just plunged the most on record!
- *MUFG SHARES FALL AS MUCH AS 21%, RECORD INTRADAY DECLINE
It's not just Japan: Korea is getting swept in as well...
- *KOSPI INDEX SLUMPS, TAKING LOSSES FROM JULY PEAK TO 10%
... and of course, the US, where Nasdaq futures crashing as much as 2% and the S&P is down 1.1%
- *NASDAQ 100 FUTURES DROP AS MUCH AS 2%
And then there's bitcoin which, well, lets not even go there.
So strap in folks, the day is just getting started...
