Expectations of an upbeat land price survey, due on Thursday, continued to support the market, while many appear to be relieved now that interest rates here won't spike up in the foreseeable future.
Sony and Sanyo are coming up with more aggressive restructuring. But investors are now buying companies that can post strong growth without restructuring.
The market is now focused on U.S. data such as the manufacturing report. My long-term view is that solid growth will support higher stock prices.
The Federal Reserve will concentrate on the decrease in house prices and home equity loans as a strong indicator of the cooling of the U.S. housing bubble. That may limit further increases in rates past 5.25 percent.
Investors know that the upside resistance (on the Nikkei) is strong at 16,000 points, so the best strategy is hunting bargains when the market sinks.
Investors expect reports this week will show Japan's recovery from deflation and that's driving domestic demand-related stocks higher. The prospects for the steel industry are quite positive, supported by strong demand.
The prospects for the steel industry are quite positive, supported by strong demand.
But strong buying interest appeared to beat profit-taking in the end.
It's not really that overseas investors are negatively reacting to Japanese stocks overall but rather... they are waiting for results, worried about rising oil prices and higher interest rates.
In the current market, high techs are not exactly the target of investors' buying interest. Under these circumstances, it wouldn't help at all to post disappointing earnings.
An increasing amount of money is flowing into mutual funds from individuals, driving large capital stocks higher. Even so, the upside is limited as overseas investors are shifting money out of Japan as they are worried about interest rate hikes.
The market is filled with good leads today, including the stronger dollar and upbeat corporate earnings results, following a positive surprise last week in Sony's report.
The biggest incentive for investors to buy stocks right now is optimism for sustained economic growth. The kind of appetite we're seeing from investors right now won't end easily.
There was selling pressure today because of news of tighter stock margin trading rules and since today is the last day of delivery of money for sold shares, and the market responded outright.
Investors were keenly awaiting machinery orders, due out in the afternoon. However, the downside on the main indices was limited as investor hopes for a further rise remained pretty strong. An outcome (on the data) above the market consensus could set the stage for a further boost.
In the mid-term, an end to the policy is not in itself bad news, as it will bring normalization to monetary policy and signal an end to prolonged deflation.
In the mid-term run, an end to the policy is not in itself bad news, as it will bring normalization to monetary policy and signal an end to prolonged deflation.
Now it is certain that the end of the (super-loose) policy is coming at the March meeting (next week).
The U.S. economy, once a concern for investors, is now driving stocks higher.
Nippon Steel will finish strong in both the third quarter and in the full year. A strong domestic market and weak yen has helped the company achieve positive earnings.
The key factor from now on is demand in China. The peak of the company's performance has already been reflected in the share price.
The joint venture will invigorate the semiconductor market as chip equipment makers find more business opportunities.
The joint venture will invigorate the semiconductor market as chip equipment makers find more business opportunities. More interest rate increases by the Fed than anticipated will reduce consumer spending in the U.S. and some investors want to wait and see a job report that comes out later today.
Some offshore investors secured cheaper funds here in yen for investing in Japanese equities. They appeared to be nervous as they consider an end to the current ultra-loose monetary policy by the Bank of Japan would increase their costs.
Active buyers may opt to pocket gains quickly ahead of a string of holidays starting tomorrow. This would cap further gains.
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