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the "bubble" period of the late 1980s and early 1990s, a broken banking system due to a combination of the former, outdated labour market and work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