MTECHTIPS;-QE phase-out fears dragging Nikkei down; why same fears not pulling Gold down

MTECHTIPS;-QE phase-out fears dragging Nikkei down; why same fears not pulling Gold down

Selling is feeding into more selling,” said Soichiro Monji, chief strategist at Tokyo-based Daiwa SB Investments Ltd., said to Bloomberg on the plunge in Nikkei.It’s mind-boggling that this market, which is one of the most liquid in the world, can move so much in one day like this,” he noted.Nikkei, Japan's benchmark stock index dipped 2.8% to touch 13,932.92 at the afternoon break. The latest drop is 12.6% below the euphoric highs it touched last week which had been a 5-1/2-year high. Dollar, meanwhile dropped to as low as 100.585 yen in early Asia. The figure is the lowest since May 10.The fall in the Nikkei is not something new. If Nikkei can zoom high when Abenomics—nick name for policies characterised by aggressive easing measures initiated by Shinzo Abe, Japan's PM-- can work out, then it is also supposed to move down when Abenomics or Bernankenomics (you know it!) does not work out or gets phased out. That is the law of the markets. It cannot be disputed. What goes up should come down and vice-versa!"The rising yen is just a minor reason that triggered further selling. The fundamental concern that's been in investors' heads is the possibility that the Fed is exiting from quantitative easing," said a fund manager at a U.S. hedge fund to Reuters.But gold too was spurred by the very same QE measures. If there is a threat of QE measures being withdrawn, then gold too should go down! Why it is not happening?

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