Reuters Breakingviews: Japan joins global risk parade
Thursday, May 23, 2013 - 04:24
May 23 - The Nikkei’s 7 percent drop is an overdue correction, says Breakingviews, but the sell off is down to U.S. and China concerns. Being a safe haven has its drawbacks.
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The Nikkei plunges more than 7% his biggest one day drop in two year as well joining -- now to take a look at the reasons behind this is breaking these. Assistant editor Robin Cole thanks much for joining us wrongly so -- -- an overreaction by the market. That's been longer the cute or is -- the invisible man. And about with the none of those -- -- Pizza Hut without lament the two tees or on helpful. Yes it's an overreaction and it's kind of an old reaction because it seems to be done. Prompted by. -- delta comments. And from Ben Bernanke and the Federal Reserve -- in this thing in the US about whether. Q -- the in the US month -- salute slightly tapered tapering off. Which incidentally sort of -- back to peace we wrote about this threat yesterday morning. So it's old Jack put Japan's nuclear reaction to something that's happening in the US Oman in the U. And also reacting says summed -- that we can apart today it's nothing came in Asia China. I am so yes it's an overreaction because it doesn't seem to have very much to do with Japan itself when I. Well. Actually as there is caught a lot of reason to be a little bit wary of Japan because of this economics program now that must be some. -- That is important that but is this for this settle seemed to be neutral to buy things outside Japan when actually things inside to do you give some. Polls full full so yes it's an -- -- those times. I'm not -- of -- thing in Japan recently have lately you know. I'm looking -- yes absolutely and but you know there's a massive cue program as well so. Doubts about that must've been spot by the US senate stopped on site and it's whole whole separate. But I think that. As soap opera puts his it is an overreaction but if you cannot decide that this is unexpected dole or an appropriate or even surprising really mean that unity. The market to exit markets if any markets go from a straight line. Equity markets doesn't. Actually just kind of example are more a straight line the last six all right months to a point that it's getting on. Two thirds. A 60% to 70% increase so. It has come on wake up will neither X Tuesday got a straight line the big correction mode via this takes back to Lula. 22 weeks ago something site. I think that he had no it's not surprising you know this is that this is this is this is perfectly kind of -- you expect to do that is to school look at it. Also day in and Bernanke's comments that the US may -- all the gas pedals and not wasn't a surprise kinda. So. You know what the fact is that have prompted this new reaction do you think well I. I think if they did to concentrate on is how sustainable. Is it an easy it's. Is a solution really lied about is this the end of the -- Iran denies all gonna collapse now. I mean -- always sounds of that than anyone continues I don't know who -- not -- Miles as well -- it's worth my -- is relative I'm relative peace this is. The way mark on the road. You know the debate the Japan growth story the -- -- the moment is because sort of world post story. You know these. Aids is not as a nice one actually and the chances that. That the measure is the success will continue. Now there is no guarantee of that that will come a moment when he perhaps passes. Do get a -- yes it still gets over valued but my instinct is that this is not -- moment it's just the kind of gospel can salute. A little rights robbed from the fundamental change direction. Okay great thank you very much -- -- that's the latest from not cool at breaking -- the launch and assessing financial insight. What I US breaking the show every day at twelve cents to -- and sixteen -- EG MTI and -- all thanks. Is --
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