The Overnight Bloodbath in Asia

A blog about business and economics.
May 23 2013 8:22 AM

The Overnight Bloodbath in Asia

165161362
People walk past a digital board flashing the Nikkei key index of the Tokyo Stock Exchange (TSE) in front of a securities company in Tokyo on April 1, 2013.

Photo by TORU YAMANAKA/AFP/Getty Images

The steady day-by-day upward tick of the Nikkei stock index has been the most visible impact of Abenomics in Japan, but overnight things took a scary turn for investors who'd rushed into Japanese shares over the past month or so as the Nikkei plunged over seven percent. It's a sign of how strong the Abe rally has been that this essentially leaves the market where it was ten days ago and wildly higher than it was when Abe took office around Christmastime. Still, any plunge of that size is going to get attention.

The broader context is that some weak preliminary data on Chinese industrial production have Asian markets broadly down, after a day of Ben Bernanke hinting that "tapering" of QE3 was possible not offset by any hint that accelerating it might happen also drove western markets a bit down. Meanwhile survey data out of Europe indicated that France and even Germany are likely in an economic contraction phase.

Advertisement

All things considered, Japan probably had a better news day in terms of the fundamentals than other large markets. But the big upward rise of the Nikkei over the previous six months and the controversial nature of Abenomics seems to have meant that when things took a bearish turn it hit those markets especially severely.

Matthew Yglesias is the executive editor of Vox and author of The Rent Is Too Damn High.

TODAY IN SLATE

Politics

Don’t Worry, Obama Isn’t Sending U.S. Troops to Fight ISIS

But the next president might. 

IOS 8 Comes Out Today. Do Not Put It on Your iPhone 4S.

Why Greenland’s “Dark Snow” Should Worry You

How Much Should You Loathe NFL Commissioner Roger Goodell?

Here are the facts.

Amazon Is Launching a Serious Run at Apple and Samsung

Television

Slim Pickings at the Network TV Bazaar

Three talented actresses in three terrible shows.

Foreigners

More Than Scottish Pride

Scotland’s referendum isn’t about nationalism. It’s about a system that failed, and a new generation looking to take a chance on itself. 

The Ungodly Horror of Having a Bug Crawl Into Your Ear and Scratch Away at Your Eardrum

We Could Fix Climate Change for Free. Now There’s Just One Thing Holding Us Back.

  News & Politics
Weigel
Sept. 17 2014 7:03 PM Once Again, a Climate Policy Hearing Descends Into Absurdity
  Business
Business Insider
Sept. 17 2014 1:36 PM Nate Silver Versus Princeton Professor: Who Has the Right Models?
  Life
Outward
Sept. 17 2014 6:53 PM LGBTQ Luminaries Honored With MacArthur “Genius” Fellowships
  Double X
The XX Factor
Sept. 17 2014 6:14 PM Today in Gender Gaps: Biking
  Slate Plus
Slate Fare
Sept. 17 2014 9:37 AM Is Slate Too Liberal?  A members-only open thread.
  Arts
Brow Beat
Sept. 17 2014 8:25 PM A New Song and Music Video From Angel Olsen, Indie’s Next Big Thing
  Technology
Future Tense
Sept. 17 2014 9:00 PM Amazon Is Now a Gadget Company
  Health & Science
Jurisprudence
Sept. 17 2014 4:49 PM Schooling the Supreme Court on Rap Music Is it art or a true threat of violence?
  Sports
Sports Nut
Sept. 17 2014 3:51 PM NFL Jerk Watch: Roger Goodell How much should you loathe the pro football commissioner?