Japan’s stock market finished Thursday’s session 7 percent lower, in a hugely volatile session which saw the Nikkei gain 2 percent in early trade, only to dive by up to 7 percent late in the session.
A perfect storm of factors including weak China data, confusion over Ben Bernanke’s comments, surging Japanese bond yields and a strengthening yen contributed to the moves, analysts said.
“It doesn’t matter the asset class, traders are out to play today in a big way, with the Nikkei trading in a 997 point or 6 percent range! It’s been an incredible move, and anyone wanting to see a full-scale liquidation of a hugely over crowded trade will use this as textbook,” said Chris Weston, market strategist at IG in a note.
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