|USD/JPY 1995-2011 (FxStreet.com)|
"The monthly global fund managers' survey from Bank of America-Merrill Lynch, conducted before Friday's earthquake, showed allocations to Japanese equities rose to a net 8 percent overweight in the month compared with 4 percent in February."
As a result of the Yen spike, the BoJ injected 6 trillion Yen on Thursday, 3 trillion Yen on Friday, and now the G7 (U.S. Federal Reserve, Bank of England, Bank of Canada, ECB etc) plans to do a coordinated intervention to lower the Yen.
|USD/JPY reaction (FreeStockCharts.com)|
"FOR IMMEDIATE RELEASE
Thursday, 17 March 2011
20:00 Eastern Time
Statement of G7 Finance Ministers and Central Bank Governors
We, the G7 Finance Ministers and central bank governors, discussed the recent dramatic events in Japan and were briefed by our Japanese colleagues on the current situation and the economic and financial response put in place by the authorities.
We express our solidarity with the Japanese people in these difficult times, our readiness to provide any needed cooperation and our confidence in the resilience of the Japanese economy and financial sector.
In response to recent movements in the exchange rate of the yen associated with the tragic events in Japan, and at the request of the Japanese authorities, the authorities of the United States, the United Kingdom, Canada, and the European Central Bank will join with Japan, on March 18, 2011, in concerted intervention in exchange markets. As we have long stated, excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability. We will monitor exchange markets closely and will cooperate as appropriate." (via Bank of Canada)
The markets loved it. USD/JPY spiked to 82 (currently at 81.39), Nikkei is up 2.72% at 9,206 and TEPCO (Tokyo Electric Power), which owns Fukushima, is up 17% at 940. Risk is on, or short covering, for now. Hedge against another round of black swan warfare, imho. Thoughts?
Tokyo Electric Power Co. Inc (9501.JP) - Bloomberg
Nikkei 225 Index (NKY) - Bloomberg
How does the Fukushima story end? Here are recent links I tweeted. Watch NHK World Live on Ustream with live streaming #fukushima tweets here.
- "BREAKING NEWS: Japan's nuke safety agency raised accident seriousness level to 5 from 4 (Kyodo)
- French CEA says, Japan seems to have Fukushima 'under control' (Ran Squawk)
- Japan radiation localized, no immediate threat: WHO (Reuters)
- U.S. Nuclear Regulatory Commission: U.S. nuclear officials suspect Japanese plant has a dire breach (LA Times)
- RT @AsCorrespondent: UN atomic energy chief says Japan is racing against the clock in its nuclear crisis
- Engineers consider burying Fukushima to block radiation (like Chernobyl in 1986) (France24)
- Japan nuclear crisis: a 'race against time', says IAEA (Telegraph)