"... the Shanghai Stock Exchange Property Index slumped by a whopping 9.3%, the steepest drop since June 2008, and pushing it down to -11% for the year. The weakness also spread to the broader market, with the Composite closing down 3.65% the biggest drop in months, and now just barely positive, at +0.2%, year to date...
"...a few hours ago Dagong downgraded Japan from A+ to A, with a negative outlook.
"Among other things, Dagong said the Abe administration’s economic policies would 'critically exacerbate the fiscal situation and cannot solve the entrenched problems constraining national wealth creation capability', that Abe's policies will 'critically exacerbate the fiscal situation and cannot solve the entrenched problems constraining national wealth creation capability' and that 'the economy will remain in a "prolonged slump" causing the risk of sovereign credit crisis to rise.'"
And from Societe Generale:
"Asian stock markets started the week on a sour note, reacting to news of additional measures in mainland China to restrain real estate prices. This was arguably also the main factor driving down the Australian dollar, although the economic news reports this morning were also weak. The main exception to stock market weakness was Japan, where stocks are trading firmer despite a fractionally stronger yen. The relative stability of the yen is noteworthy, given that the proposed new BoJ governor, Mr Kuroda, reiterated in his confirmation hearing his strongly dovish bias, arguing for accelerated and broadened asset purchases.