Nikkei Back Down Below 8,000


In a sign of what may be in store for the post-war equity markets, the Nikkei fell below 8,000 today. With worries about Sars rising, Europe full of euro-related low groth problems, and the US job and profitability situation all focusing attention, it's hard to see a strong rally any time sooon. God, I can still remember that it was only March last year that we were

Reform at the Bank of Japan?


The BoJ has decided to proceed with its plan for buying asset-backed securities (ABS's) in particular by buying securities from small and medium-sized enterprises, and to conduct this activity as a routine part of its monetary operations - even if only on a temporary basis - over the next few years. This was decided at the 7, 9 April meeting by a majority vote of

Japan's Continuing Economic Crisis

One day or another Japan unfortunately is going to burst. Left on its present course, like the proverbial nineteenth century steamship with the boiler overheating, one day one too many of the bolts will sheer off, a boiler plate will give and then the devil take the hindmost. Of course one of the few debateable points remaining is whether or not there is

Japan a Lost Decade


A number of hypotheses have been presented to explain Japan's continuing economic failure since the beginning of the ninetees: inadequate fiscal policy, the liquidity trap, depressed investment due to over-investment during the "bubble" period of the late 1980s and early 1990s, a broken banking system due to a combination of the former, outdated labour market and work

Japanese Saving Moves Towards Negative Territory


I'm really not sure what importance to put on this, but it does seem in line with the idea that demographics, and the life cycle model, have something to say about what is happening in Japan. It seems to fit my picture nicely, which is why I'm cautious. There isn't going to be anything to cheer about here. Despite a worsening income environment

Japanese Intevene Heavily to keep Yen from Rising


The Bank of Japan intervened heavily in March, spending the double of what it spent in February. The only remaining question: just what would have been the yen/dollar rate without this intervention? The Bank of Japan stepped up its efforts to prevent the yen strengthening in March, according to official data that confirmed traders' suspicions

Japanese Industrial Production Falls in February


Japan's industrial production fell 1.7 percent in February from a month earlier on a seasonally adjusted basis, preliminary data from the Ministry of Economy, Trade and Industry (METI) showed on Monday. That was worse than a median forecast of a 0.9 percent fall in a Reuters survey of 19 economists conducted last week. METI forecast manufacturers

Nikkei Closes Year Below 8,000

It's not clear what consequences this will have, but it is certainly not good news. Tokyo share prices fell below the 8,000 yen mark on Monday to close fiscal 2002's trading amid fears that the U.S. led war against Iraq will be prolonged.The sharp decline will certainly hurt the business results of many companies and commercial banks over the current business year

Japan Deflation Continues


Despite the recent oil price rise, Japan just registered its 23 consecutive month of retail sales decline. Japan's nationwide retail sales have fallen 0.2 percent in February from a year ago, their 23rd straight month of decline. The drop compares with 2.6 percent fall in January and a 3.4 percent decline in December, the Ministry of Economy, Trade and Industry (METI).

BoJ Emergency Meeting Disappoints

The Bank of Japan, which met earlier today for an emergency session, voted to increase the purchase of shares from Japan's struggling banks, but stopped well short of taking the radical anti-deflation measures some had expected. The measures agreed upon fall far short of the 'unorthodox' measures that many have been calling for, and seem to cast rather a long