Bank of Japan’s Kuroda Stiffed Casino Addicts by Withholding Stimulus, Nikkei 225 Plunged 3.61% as Yen Rallies

If the Venezuelan government has run out of the money to print money, their counterparts in Japan, particularly the BoJ, seem to run out of spunk to deliver what they recently promised.

Casino addicts recently drooled over previous promises by the BoJ for more stimulus. Unfortunately, the BoJ duped them with a no-show today.

From Bloomberg

Shares in Tokyo tumbled, sending the Nikkei 225 Stock Average to its biggest loss since February, after the Bank of Japan maintained its monetary policy, confounding forecasts it would add to record stimulus.

The Topix index declined 3.2 percent to 1,340.55 at the close in Tokyo after the BOJ kept bond-buying, its negative interest rate and exchange-traded fund purchases unchanged. Volume on the Topix was about 48 percent higher than the 30-day average. Most economists surveyed by Bloomberg expected additional easing, with the stock gauge rising as much as 1.5 percent in the morning session. The Nikkei 225 retreated 3.6 percent to 16,666.05, its worst decline since Feb. 12. The yen surged 2.5 percent to 108.76 per dollar.

“It’s a total shock,” said Nader Naeimi, the Sydney-based head of dynamic markets at AMP Capital Investors Ltd., which oversees about $120 billion. “From currencies to equities to everything -- you can see the reaction in the markets. I can’t believe this. It’s very disappointing.”

The Nikkei’s 225 chart has been a wild roller coaster ride marked by stunning volatility. The Nikkei has been having a hard time to breach the high from the NIRP announcement. Today’s 3.61% brings the benchmark back below the resistance levels.

Increased incidences of heightened volatility only signifies the accumulating imbalances. As said last weekend,

Maladjustments, distortions and mispricing from sustained interventions have only been mounting. Politicians will never come to realize that there is no such thing as a free lunch until it is too late.