Nikkei 225 at 5 Year High (ETFs: EWJ, ITF, VPL)

Japan´s Nikkei-225 closed at a new five year high, after gaining 40% in 2006, when foreign investors bought a net 10.21 trillion yen of Japanese equities. Japan is emerging from deflation, and corporate profits rose to record highs. Japan´s industrial production rose 1.7% in November, a fourth month of expansion to a new record high. Japan´s large manufacturers projected their profits will rise 5.2% in the year ending March 31, and plan to boost capital spending 17.3% in 2006. The dollar´s fall below 114-yen could trigger some profitaking in Japanese export oreinted stocks. Bank of Japan´s Fukui, interviewed in Switzerland, indicated the central bank would not intervene to defend the dollar at currenct levels. "The risks to Japan's economy were not likely emerge on the domestic front, but perhaps some from the outside," Fukui said.

Nikkei 225 Stock Index