business

Stocks close up 1.95% at six-month high

12 Comments

Tokyo stocks surged 1.95% Friday to close at their highest level in six months, boosted by a weaker yen and hopes the U.S. Federal Reserve will maintain its easy-money policy.

The benchmark Nikkei 225 index added 289.51 points to 15,165.92, the best finish since hitting a five-year high in late May. The Topix index of all first-section issues was up 1.68%, or 20.49 points, at 1,239.04.

Investor sentiment improved after U.S. Federal Reserve chair nominee Janet Yellen suggested the central bank would not start reeling in its easy-money policy in the immediate future as economic growth remained tepid and unemployment still too high.

"The market scenery has changed," said Toshihiko Matsuno, strategist at SMBC Friend Securities.

"Ms Yellen suggested the easy-money policy would continue to prop up the economy, which is theoretically a negative factor for the dollar," he added.

But her comments boosted risk sentiment and pushed up stock prices, which prompted stock investors to jump on the bandwagon, he said.

"Many market players moved for buy-backs," Matsuno said.

The Nikkei gained 7.7% or more than 1,000 points over the week.

© (c) 2013 AFP

©2019 GPlusMedia Inc.

12 Comments
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What? This can't be right! The JT doomsdayers keep telling us about the demise of the economy with hyperinflation; that the yen should be toilet paper with JGB yields at astronomical levels. Oh of course, I forgot, the Government is fudging the figures again....

-3 ( +2 / -5 )

randommanNov. 15, 2013 - 04:18PM JST

What? This can't be right! The JT doomsdayers keep telling us about the demise of the economy with hyperinflation; that the yen should be toilet paper with JGB yields at astronomical levels. Oh of course, I forgot, the Government is fudging the figures again....

Do you really think that the Nikkei is indicative of the health of the Japanese economy?

0 ( +4 / -4 )

US$ = 100yen today, nice for those of us selling to overseas markets. Hope it can at least maintain this level for awhile.

-4 ( +1 / -5 )

Is Japan trying to export its way to recovery or is it trying to innovate its way? Japan could be a leader in solar power and battery storage development).

-1 ( +1 / -2 )

**Do you really think that the Nikkei is indicative of the health of the Japanese economy?

Not an absolute indicator but It is one aspect (not the day to day moves) looking at the longer term growth expectations of companies. If you want to take that perspective then you may want to be consistent by refraining from ranting about the failure of Abenomics after a bout of selling in the Nikkei or any adverse moves in the dollar yen.

Do tell me what is an indicator of a healthy economy.

-3 ( +2 / -5 )

I would look at real per capita GDP changes. This gives some indication of the standard of living. The Gini coefficient is important too.

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randommanNov. 15, 2013 - 07:19PM JST

Do tell me what is an indicator of a healthy economy.

Please read

bruinfanNov. 15, 2013 - 08:07PM JST

I would look at real per capita GDP changes. This gives some indication of the standard of living. The Gini coefficient is important too.

The Nikkei is bloated with cash from cheap government lending and company repatriated earnings from abroad with the cheap yen.

The domestic economy, without the large government public spending has grown by a measly 0.1% in real terms and the export economy has actually shrunk in volume of trade; even with a manipulated currency.

-1 ( +3 / -4 )

GDP per capita figures for Japan has been similiar to such countries as Germany and the UK and income is more evenly distrubuted than the US or UK. If those figures are a measure of a country's success then Japan has not been doing badly in a deflationary economy.

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randommanNov. 15, 2013 - 09:46PM JST

GDP per capita figures for Japan has been similiar to such countries as Germany and the UK and income is more evenly distrubuted than the US or UK. If those figures are a measure of a country's success then Japan has not been doing badly in a deflationary economy.

Japan has a sovereign debt of 230% of GDP to achieve those per capita figures and a sovereign debt of 270% of GDP will force Japan to default on its sovereign debt.

That 270% is fast approaching.

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Dog

The domestic economy, without the large government public spending has grown by a measly 0.1% in real terms and the export economy has actually shrunk in volume of trade; even with a manipulated currency.

So the Japanese economy has grown. lol thanks for that Dog, so abenomics isn't failing then ?

-4 ( +0 / -4 )

"I would look at real per capita GDP changes."

I have, and it's up about 10% from 2010.

http://www.tradingeconomics.com/japan/gdp-per-capita

"...will force Japan to default on its sovereign debt."

Japan will be unable pay back itself in a currency that it has a monopoly to issue. That should be interesting. Only dumb politicians, like Republicans in the US, could manage doing that.

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I'm not so sure that a partial default wouldn't be so bad in the long term... If you don't think so look at Argentina and Iceland now. Also for those who slammed me above, could you give me some insights?? (Seriously) Against renewable energy resource technology or other reason...

0 ( +0 / -0 )

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