Click For Photo: http://static5.businessinsider.com/image/5a79192fb06a7933008b478f-1190-625/the-nikkei-is-getting-destroyed.jpg
The Nikkei index has slumped in early trade after Japanese markets opened at 11:00am AEDT.
The declines follow a drop of 8% in Nikkei futures this morning, after US stocks had their largest one-day points fall in history.
Stocks - Australia - South - Korea - Time
Stocks in Australia and South Korea are sharply lower and a short time ago, the Nikkei 225 index was down more than 4.5% — decline of over 1,000 points:
It marks a sharp correction for Japanese stocks, just a few days after trading at near all-time highs.
Nikkei - % - High - Points - January
The Nikkei has dipped by more than 10% from its recent high of 24,124 points reached on January 23 — indicating the market is now in a technical correction.
Chris Weston, chief strategist at IG Markets, said it’s “not looking good”, with the selloff in global stocks stemming from a rise in volatility.
Trade - Year - Investors - VIX - Measure
“The trade of the year in 2017 among institutional investors was selling the VIX – a measure of volatility — and that formed the basis for big investment flows,” Weston said.
The Cboe Volatility Index consistently traded near record lows in 2017 at a reading of around 10, but spiked overnight to a reading of 37.
Volatility - Players - Position - Selling
“Now volatility has risen, big institutional players have been forced to reverse their position which has acted to exacerbate the selling.”
From a technical standpoint, AxiTraders’s Greg McKenna said the Nikkei has now broken through key support levels.
Today - Fall - Nikkei - Bottom - Range
“With today’s fall the Nikkei has broken down and through the bottom of the range it was...
Wake Up To Breaking News!
Never argue with an idiot, the spectators may not be able to differentiate between you.