Brutal reversal in Japanese stock markets
The Nikkei rose to the highest since 1992 in Asian trade earlier today but it's been a brutal turnaround since.
The index closed 0.2% lower but futures have continued to sink and are now down 2%. That's the worst intraday decline since the US election a year ago. The cumulative drop from the high is 3.8% in less than a dozen hours.
The reversal highlights the vulnerability of Japanese stocks (and perhaps global stocks) in the coming weeks. Even a modest retracement would further weigh on USD/JPY.