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Nikkei plunges 9.4 pct, biggest 1-day fall since '87

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Ghost Dog Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Oct-08-08 01:39 AM
Original message
Nikkei plunges 9.4 pct, biggest 1-day fall since '87
Source: Reuters

Wed Oct 8, 2008 2:06am EDT

TOKYO, Oct 8 (Reuters) - The Nikkei average plunged 9.4 percent on Wednesday, its biggest one-day drop since the 1987 stock market crash, as fear spread of a global recession, fueled by expectations of a slide in profits at Toyota Motor Corp (7203.T: Quote, Profile, Research, Stock Buzz) and a firmer yen.

...

"The deteriorating outlook for the economy and the deepening financial crisis are pushing fear to its limit," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management. "Investors want to dump shares as their willingness to take risks has shrunk, but no one wants to buy even if stocks are valued cheaply."

...

The Indonesia Stock Exchange halted trading on Wednesday after the benchmark composite index .JKSE dropped more than 10 percent, while Hong Kong's main stock market index .HSI dropped more than 5 percent. <.HK>

The benchmark Nikkei .N225 slid 952.58 points to 9,203.32, its lowest close since 2003. The broader Topix lost 8.0 percent to 899.01.

Toyota tumbled 11.6 percent to 3,280 yen after the Nikkei business daily said it was likely to post a 40 percent slide in annual profit, thanks to weak sales in North America and slower growth in China.

Read more: http://www.reuters.com/article/marketsNews/idCATKF00305720081008?rpc=44&sp=true



Hedge funds jumping out of high buildings.
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Dr.Phool Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Oct-08-08 01:44 AM
Response to Original message
1. What are you doing out of bed already?!!
I posted this 2 minutes after you. Now I gotta delete it!

I'll give you a good snark in the SMW when I get out of bed!
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Ghost Dog Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Oct-08-08 02:02 AM
Response to Reply #1
8. Sorry 'bout that!
Spanish radio awoke me half an hour ago. Sun's up here at 08:00 local (GMT+1, same as UK).

Think I'll stay out of SMW today, tho.

(Debate was favorable, huh?) :hi:
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Dr.Phool Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Oct-08-08 02:06 AM
Response to Reply #8
9. I missed it.
Went to a Spyro Gyra concert and forgot to set the Tivo. But, it's recording right now, so I can watch it in the morning.

:hi:
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Ghost Dog Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Oct-08-08 02:11 AM
Response to Reply #9
10. I first checked here (always a fun blogger):
... 11.40pm update: The breakdown of my blogging software enables me cunningly to postpone my final judgment until after the results of the CNN and CBS snap polls of debate viewers, both of which say Obama won: CNN by 54% to 30% (with Obama's favourables up and his unfavourables down, both unchanged for McCain); CBS 39% to 27%. Matthew Yglesias: "It's extremely surprising to me, tactically, that McCain didn't try to do something new. Instead, McCain took the same talking points (earmarks bad, tax cuts good, earmarks very bad) that have seen him fall behind and decided to repeat them with less energy."

James Fallows: "From a horse-race perspective, John McCain came in behind and losing ground, in the middle of a financial/economic panic that works against him, and therefore needing a big win. This meant either damaging and flummoxing Obama, or so outshining him in audience rapport, mastery of policy, and empathetic connection through the camera, that the debate could be presented as a turning point. None of that happened. (McCain's best performance was at the end, rejecting a "Yes/No" question on whether Russia is an "evil empire.") At this stage in the race, a tie goes to leader, and this was not a tie."

The conservatives at The Corner are mainly quite depressed, too. Oh, and: that was quick.

Now vote in our poll! You know it makes sense.

Midnight: There's a detectible sense among the punditocracy, on television and on the web, that the election might prove to have been decided here tonight. Only a fool would say that outright, of course, so few do, but this wasn't the debate McCain needed: on the one hand, he didn't go for "presidential"; on the other hand, he didn't go for "Bill Ayers" character attacks like we've heard in Palin's recent stump speeches. A month is an exceptionally long time in politics, etcetera, etcetera. But I don't see how it could have gone much better for Obama, who made no errors, and remained authoratitive and empathetic -- "presidential" -- throughout. McCain seemed to try-but-fail to deliver a new and newly detailed economic argument that only ended up raising more questions; he had at least one incredibly odd moment, calling Obama "that one", and more generally his dripping contempt for Obama was as evident as ever. He tried to coax the audience into laughing with him at Obama, which fell flat. To the extent that these things are about the broad-brush impressions that the candidates manage to convey, the impression was that it was Obama who was in command, all the way through.

So does this mean McCain gets even more dirty and relentlessly negative from here on in? Would it make any difference if he did? I don't know. My job is to pose rhetorical questions, and then go to bed. Thanks for reading, and please keep commenting...

/... http://www.guardian.co.uk/world/oliverburkemanblog/2008/oct/07/uselections2008.barackobama1
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bemildred Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Oct-08-08 01:51 AM
Response to Original message
2. Is this capitulation yet? nt
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Dr.Phool Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Oct-08-08 01:53 AM
Response to Reply #2
4. I looked at the Dow futures a few minutes ago.
They were down over 200 then.

Time to stock up on more food at Costco tomorrow.
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MidwestTransplant Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Oct-08-08 01:58 AM
Response to Reply #4
6. I'm surprised they aren't down more. There will surely be a rate cut first thing in the AM
Not sure what good it will do.
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Dr.Phool Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Oct-08-08 02:01 AM
Response to Reply #6
7. According to yesterday's news, markets already priced a .75% reduction.
I guess the next move is to pay people to borrow.
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SahaleArm Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Oct-08-08 01:51 AM
Response to Original message
3. The crash is accelerating
Edited on Wed Oct-08-08 01:52 AM by SahaleArm
By the time TARP gets implemented it will probably be worthless. Markets want capitulation now.
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Dr.Phool Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Oct-08-08 01:56 AM
Response to Reply #3
5. Asian markets are diving right now.
WOW!
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Politicalboi Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Oct-08-08 02:30 AM
Response to Original message
11. I hope this gets blamed
On Bush/Cheney. And I hope they come with pitchforks and torches to the White House.
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Dr.Phool Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Oct-08-08 02:34 AM
Response to Reply #11
12. Are you kidding?
It's all Clintons fault!

:sarcasm:
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bemildred Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Oct-08-08 03:17 AM
Response to Original message
13. FTSE, CAC and DAX now appear to be down about 8%. nt
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muriel_volestrangler Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Oct-08-08 04:16 AM
Response to Reply #13
14. Not quite that bad now - -3.8% to -5.8% 15 minutes ago (nt)
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NeoConsSuck Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Oct-08-08 04:24 AM
Response to Original message
15. This is the day
that will make history books. I knew last night before I went to bed, and the Nikei was *only* down 4.5%.

Of the tiny few large caps that have reported earnings, they were just terrible: Bank of America and Alcoa. Usually, they'll miss their estimates by a penny or two a share, and the market reacts badly. They both missed tremendously!

If you thought the last few days had panicky trading, watch today.

And a rate cut at this point is like trying to put a bandaid on a severed leg.

Two of my accounts I put into cash back in July. My other two accounts after today might be worth two weeks of groceries :(



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Syrinx Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Oct-08-08 05:43 AM
Response to Original message
16. Tokyo Shares Lose 9.4 Percent as Europe Slides in Early Trading
Source: New York Times

PARIS — Another wave of relentless selling washed over global markets Wednesday, with stocks plunging in Europe and Asia. The Tokyo market had its worst decline since the 1987 crash.

The British government’s announcement of a plan to bail out the country’s foundering banks with about $88 billion of new capital did little to restore market confidence, with banks again leading indexes lower Wednesday after the Dow Jones industrial average fell 5.1 percent in New York Tuesday.

“It was a horrible session in New York and a horrible session in Tokyo,” Jim Reid, head of fundamental credit strategy at Deutsche Bank in London, said. “The momentum is negative.”

“I think there are probably more bank failures and forced consolidation to come in the financial sector,” Reid said. “Whatever day of the week you wake up, it’s another country having problems.”

Read more: http://www.nytimes.com/2008/10/09/business/09markets.html?_r=1&hp&oref=slogin
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BumRushDaShow Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Oct-08-08 06:13 AM
Response to Original message
17. Breaking: Fed and other world banks just cut their interest rates...
Fed just cut 50 basis points (0.5). They obviously realized that a bloodbath was about to occur here when the market opened!
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