Tomorrow? Today marked Japan's Nikkei 225 worst ever two days. Even worst than Oct 1987 for those that remember that historic crash. Our market dropped 3.8%. Yes tomorrow will be interesting but so too was today.
"The Nikkei index fell 4,451.28 points to 31,458.42. It dropped 5.8% on Friday and has now logged its worst two-day decline ever, dropping 18.2% in the last two trading sessions. At its lowest, the Nikkei plunged as much as 13.4% on Monday"
The 1987 crash. Most of that crash was done in those two days. Including the several pre-crash days, 26,700 to 21,900 was an 18% drop.
This time the Japanese market had already corrected heavily before this two day crash. Total from top of 42,224 to 35,909 is 15%. That was to 2nd of Aug which is as far as the chart below shows. It dropped to 31,078 today. Total drop is now 26%. That's already much more than the 1987 drop.
It's been mostly about tech stocks that reached high valuations due to the AI euphoria. Australia had escaped most of the carnage until Friday and today thanks to no real exposure to AI and the lofty valuations. Japan fell hard because rates were raised this week to combat the falling yen which was feeding local inflation. Euro 50 was down closer to 3% earlier tonight. It's now down 1.6%. It is possible that the worst of this is over.
MNB Price at posting:
6.3¢ Sentiment: Buy Disclosure: Held
