Another very bad open, and no reason to expect much improvement.
From the related Bloomberg story:
Japan’s stocks plunged, with the Nikkei 225 Stock Average set for its worst two-day drop in more than a decade. The yen strengthened while commodities prices and European shares plunged, adding to concern world economic growth is faltering.
Honda Motor Co. fell to the lowest since September 2005, and Canon Inc. extended its decline for the year to 18 percent after the yen rose to the highest in more than two years against the dollar and five months versus the euro. Both companies generate the majority of their revenue abroad.
The Nikkei 225 Stock Average slipped 641.21, or 4.8 percent, to 12,684.73 as of 9:55 a.m. in Tokyo. The index has lost 8.4 percent in the last two days, its biggest drop over two sessions since December 1997. The broader Topix index fell 61.55, or 4.8 percent today, to 1,232.19.
Europe’s Dow Jones Stoxx 600 Index sank 5.7 percent yesterday, pushing it into a bear market, and the price of crude oil dropped to the lowest in more than a month.
“Losses are causing investor sentiment to take a turn for the worse,” Terunobu Kinoshita, who helps manage $785 million at Fund Creation Co. in Tokyo, said in an interview with Bloomberg Television. “Previously investors had drawn comfort from the strength of emerging markets and European shares.”….
The yen strengthened to as high as 105.62 against the dollar, a level not seen since May 2005. Versus the euro, Japan’s currency rose to as high as 152.32, the strongest since August 17. A stronger yen decreases the value of Japanese exporters’ sales made overseas when converted into local currency.
Crude oil for February declined 2.1 percent to $88.69 per barrel in New York yesterday, the lowest since Dec. 12. A measure of six metals traded on the London Metal Exchange, including copper and zinc, slid 3.4 percent, the most in two months.