The Dow shrugged off the Asian and European hysterics.
Posted on 01/17/2006 9:02:17 PM PST by RWR8189
Yup.
UPDATE 1-Selling stampede shuts down Tokyo stock market
Wed Jan 18, 2006 01:08 AM ET
By Linda Sieg and Yukari Iwatani
TOKYO, Jan 18 (Reuters) - A stampede of sell orders forced the shut-down of the world's second-biggest bourse on Wednesday as investors fled the Tokyo stock market, spooked by fallout from an investigation into Internet company Livedoor Co. (4753.T: Quote, Profile, Research) .
The Tokyo Stock Exchange suspended trading at 0540 GMT (2.40 p.m.), 20 minutes before the normal closing time, after the number of transactions threatened to exceed its computer system's capacity of 4.5 million trades per day.
The exchange has been hit by a series of system problems in recent months, including a glitch that halted trading for almost a full day late last year.
Analysts said Wednesday's shut-down would deal another blow to the image of the exchange, which has plans to list its own shares.
Exchange President Taizo Nishimuro told a news conference earlier that the bourse would also consider shortening trading hours on Thursday and beyond if necessary.
"The recent spike in orders is extraordinary," he said.
The number of transactions had reached about 4 million by 0525 GMT (2:25 p.m.).
News that the exchange was considering a shut-down accelerated selling across the board, pushing down the Nikkei share average by more than four percent to as low as 15,059.52 before it clawed back to finish the shortened session down 2.94 percent at 15,341.18.
That was still the Nikkei's biggest one-day fall since April 18, 2005, when it fell 3.8 percent. The broader TOPIX index fell 3.49 percent to close at 1,574.67.
The three-day sell-off has wiped out more than $300 billion in shareholder value -- equal to about the gross domestic product of Sweden.
YEN UNDER PRESSURE
The share-price tumble also hit the yen, which fell to a day's low of 115.88 yen to the dollar, before recovering to around 115.60.
"The problem has caused a selling climax. Everyone is throwing in sell orders. The system is jammed and orders aren't making their way through," said Ken Masuda, a senior dealer at Shinko Securities. "Even after five minutes, orders aren't going through. This is ridiculous."
Investigators from the Tokyo District Prosecutors' office and the Securities and Exchange Surveillance Commission raided the Tokyo headquarters of Livedoor late on Monday on suspicion that the company had spread false information to investors.
Newspaper reports on Wednesday said the company was also suspected of tampering with its financial reports.
The investigation has scared off individual investors, who were a major factor in the Nikkei's 40 percent rise last year. Only last Friday, the Nikkei hit a five-year closing high.
"This is clearly about the TSE's system risk," said Tsuyoshi Nomaguchi, strategist at Daiwa Securities.
"This is an event unheard of before.
"Investors, who have traded stocks on the assumption that the TSE system does not break down, are running away from the market and the selling pressure will continue for the rest of the day."
"Until the investigation on Livedoor and the fate of the company becomes clear, selling pressure on the overall Tokyo stock market will likely stay. But I think the market will recover after that," he said.
This really is a big story. In recent weeks, talk was big on how the Nikkei was on a comeback. Now this. ..Sounds familiar.
Do you know that the Nikkei is down another 470 points again today? I just pulled up Bloomberg and saw it.
All I know is that it is shut down. ..Like just an hour ago or so.
Lotsa folks gonna be sweatin about 4 hours from now. Any news outa London?
Really? Um, Man I hope this is a great day for the US stock market. We are the greatest contry in the world but we have a bunck of Commies in the lamestream media that love to talk down the market. It is sick.
""The problem has caused a selling climax. Everyone is throwing in sell orders. The system is jammed and orders aren't making their way through," said Ken Masuda, a senior dealer at Shinko Securities. "Even after five minutes, orders aren't going through. This is ridiculous." "
This is one of a trader's worst nightmares, literally (I Have had the cannot get order in nightmare many times). i remember some stuff like this in 97-99 (slow order processing).
Some itty bitty bulletins from http://BigCharts.MarketWatch.com which are making the DJIA feel better, faster!!!
The Dow shrugged off the Asian and European hysterics.
The Dow shrugged off the oil pressue gauge today to drop only half what the Nikkei did just two days prior!!! Pretty impressive I think!!! (all things considered)
The Dow shrugged off the oil pressue gauge today to drop only half what the Nikkei did just two days prior!!! Pretty impressive I think!!! (all things considered)
March '03 would have been a great time to buy! Or October '01. Just when nobody wanted it.
It is important to note that the US correction was based upon earnings (misses), and statements. Profit taking was likely as some funds had already announced re-balancing.
Who or what is calling the tune this time?
OBL, Japan, Iran, rising interest rates, oil prices, inverted yield curve? What a choice!
OBL, we sweat two or three weeks - no strike - he's a defeated blow-hard.
Japan, give me a break, a Internet skyrocket blows up the world stock markets - shades of "The Hitchhiker's Guide to the Galaxy".
Iran, send in the CIA, please.
Rising interest rates, I thought that Mr. Market had decided that twas not to be the case.
Oil prices, overweight in oil related stocks.
Inverted yield curve, what the hell is that about? Why are investors willing to hold long term, dollar denominated assets paying a lesser yield than short term ones? I don't understand that, barring the flight to quality argument, which sort of brings us back to OBL and Iran, and supports the Gold run up.
I think Iran will fester for a few years without any strong action by anyone, and will slip into the background. The US is struggling in a quagmire of self-doubt. Israel can postpone military action for a few years, I would think. The UN will do nothing. Covert action may improve the situation.
OBL is a dying idiot, supported by an ever shrinking band of idiots.
Oil prices will continue to go up as economies grow - but oil continues to be historically cheap energy.
So, I continue to doubly overweight oil service and E&P companies. I've accumulated a modest position in gold stocks. The strategy has held up pretty well so far.
"Japan, give me a break"
I know! Down almost 5% over one internet company investigation!!! What I want to know is... Did the Nikkiea, or however you spell it, get back the 5% yet? How long did it take. Here in CA we really watch the Pacific Rim markets and companies like a hawk. Especially with our idiot celebrity Governator borrowing our asses off!!!
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