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If You Think The US Stock Collapse Is Bad, Take A Look At Japan
waterfall swan dive falling
waterfall swan dive falling

REUTERS/Dado Ruvic

The Nikkei closed down another 1.40% on Thursday night. It's currently the biggest underperformer of the year, beating the main equities index of every other advanced economy.

As of Thursday, the S&P 500 was still in the green for the year, up 2.4% since January. In comparison, Japanese equities were getting smoked, down 9.48% since January, and down 11% in the past three weeks alone.

In terms of the Japanese economy, an April sales-tax hike had a significant impact, and Friday the Financial Times reports that Bank of Japan failed to meet its bond-buying target for the first time in two years, despite a massive quantitative easing program.

As the chart makes clear, Japanese equities are struggling to get any real traction at all this year.

Nikkei
Nikkei

Bloomberg

Only Germany's DAX, down more than 8% since January, comes close in terms of the world's major advanced economies.

It's not all bad news for Japan's investors. Despite a miserable performance this year, stocks are still riding high in comparison with, say, their 2012 levels. That's because the Nikkei surged by an astonishing 57% in 2013. To put the recent drop in context, here's a longer-term graph:

Nikkei
Nikkei

Bloomberg




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