Investing in JapanInvesting in Japan



Thoughts on the N225, EAFE and EWJ (May 7)
Thoughts on the Nikkei 225 Stock Average: Japanese stocks have been rallying over the past several weeks and the benchmark Nikkei 225 Stock Average is now at a 2-month-plus high; the N225 recouped 14,000 last Friday in spite of thin trading of late, due to the extended holiday that continues through this Tuesday. Short-term, sentiment has [...]


Nikkei Weekly Outlook: More Upside Post-Golden Week? (May 5)
What to watch: Monday and Tuesday, May 5-6: Nothing — TSE closed (trading resumes Wednesday); Earnings season also resumes; Friday, May 9: Index of Business Conditions (Cabinet Office) Ongoing: As always, external factors will impact domestic equities; however at present, conditions seem favorable given the weakening yen (now around ¥105/$1) and an accommodative Fed on all [...]


Nikkei Weekly Outlook: 14,000 in Sight Pre-Golden Week (Apr 27)
What to watch: Earnings reporting continues; JGB activity (unprecedented ?????????? (circuit breaker) action last Friday; rising yields but equity yields still attractive to the 10-year); Tues./Wed., April 29 -30: FOMC rate decision meeting; Wed., April 30: Bank of Japan (BoJ) monetary policy meeting; March - Industrial production; March - New housing starts; March - Unemployment [...]


Nikkei Weekly Outlook: Overbought or Not, That is the Question (Apr 20)
What to watch: Key earnings reports begin Wednesday 4/23; Friday 4/25: CPI for March (April for select metropolitan areas) Ongoing: External factors will inevitably weigh on domestic stocks (bullishness in the U.S. helped pull the Nikkei up to a multi-week high by week’s end).


Nikkei Weekly Outlook: Downside Risk Ahead of Earnings? (Apr 13)
What to watch: Japanese earnings forecast (downward) revisions; U.S. earnings releases; Tuesday; 4/15 Mansion (condo) sales for March; Wednesday 4/16 U.S. CPI for March Ongoing: External factors; Investors are apprehensive of bad news; General Electric (GE: 32.59 0.00%) delivered worse than expected earnings early Friday, sparking a broad market selloff in the U.S. Shares of GE [...]


Nikkei Weekly Outlook: Holding 13,000 (Apr 6)
What to watch: Monday, 4/7: Cabinet Office’s Diffusion Index of Economic Indicators; Tuesday, 4/8: Cabinet Office’s “Economy Watchers” Survey; Tues-Weds. Bank of Japan Monetary Policy Meeting; Thursday, 4/10: Cabinet Office’s Machinery Orders for February; Friday, 4/11: Bank of Japan — Producer Price Index (PPI); Fri-Sat. G7 meeting of Finance Ministers


Nikkei Weekly Outlook: To 13,000 or Back to 12,000? (Mar 30)
What to watch: Monday, 3/31: February Industrial Production; Tuesday, 4/1: Tankan (watch capex spending outlook and yen/dollar predictions — the FY07 second-half ¥/$ prediction for the December survey was 113.79 compared to 114.23-33 in the Sept. and Mar. surveys and a most recent quote of about ¥99).


Timely Buybacks and Retiring of Stock (Mar 25)
Aside from comparatively low valuations (pe, pbr, etc) and high yields, two other positives supporting Japanese stocks at current levels are share buybacks and retiring of treasury stock. By way of an article published by the Nikkei on Sunday, the WSJ reports Tokyo-listed companies are expected to have canceled more than 1.11 billion shares worth [...]


Nikkei Weekly Outlook (Mar 23)
What to watch: Monday, 3/24: Business Outlook Survey; Land Prices; Friday, 3/28: CPI Ongoing: BoJ disarray (Nikkei reports results of a poll showing 41% of respondents blame LDP for chief-seat vacancy vs. 27% for DPJ); Pointless speculation of rate cut (next BoJ rate decision meeting April 8-9); Fukuda Cabinet support rate drops 9 points m-o-m to [...]


Global Central Bank Rates - March 21, 2008 (Mar 23)
Global central bank rates (Brazil, South Africa, New Zealand, Australia, Mexico, UK, ECB, Canada, Switzerland, USA, Japan) as of March 21, 2008.