Japanese equities led Asia lower, falling nearly 3.5% and re-testing the 52 week lows of last week’s trading $EWJ

Japanese equities led Asia lower, falling nearly 3.5% and re-testing the 52 week lows of last week’s trading. The bottom line on the weakness is that markets don’t feel the actions taken by the BoJ (expanding the bank-loan program) and the stimulus announced by PM Kan will be enough to support the economy as evidenced by the continued strength in the JPY. Also weighing this morning was the release of the Aug manufacturing PMI which unexpectedly fell to 50.1 from last month’s 52.8 and saw the forward looking index of new orders fall below 50. The JPY moved off session highs after the country’s finance minister reiterated at a press conference that the gov’t is ready to take “bold” actions on the JPY if necessary.