Nikkei up about 6% on the week

|By:, SA News Editor

The Nikkei continues a big rally this week, up 2.1% overnight and now higher by about 6% this week. Boosting the action last night was Finance Minister Tara Aso saying the government still has the option of intervening in currency markets. This had the yen (FXY) falling further and allowed dollar/yen to bust through ¥100 for the first time since about Labor Day.

"The view that tapering of stimulus won’t happen for a while is spreading,” says one fund manager. Taper? Japan? Yikes.

Separately, Nomura's Norikazu Akedo says the government must continue to feed the monkey or the Nikkei could fall 20%. “Worldwide investors are breathlessly watching the future of Japan,” he says. “We want the government to send out strong messages to foreign and local investors.”

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