Seeking Alpha

Big rally caps biggest week for Japan stocks in 3 months

  • Up 2.3% overnight, Japan's Topix reversed a 3% drop the night before, and capped its biggest weekly rally since November, up 3.3%.
  • The Nikkei gained 2.9% last night. DXJ +1.1% premarket
  • ¥2.6T in QE later, William Pesak notes one year of aggressive monetary ease has failed to lift living standards, nor has it convinced companies to boost paychecks. The only inflation Japan is feeling is the kind no one likes: Higher energy prices.
  • BOJ Governor Kuroda's main achievement this year, argues Pesak, is to settle once and for al that the country's problem isn't the amount of yen sloshing around, but how it's used. Unless people borrow and banks lend, the economy won't revive. And don't forget the secular deflationary forces of an aging population and the rise of China.
  • ETFs: DXJ, EWJ, FXY, YCS, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, DXJS, JSC, ITF, JPNL, JPP, JPNS, HEWJ, FJP
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Comments (4)
  • DeepValueLover
    , contributor
    Comments (9135) | Send Message
     
    For Japan, there is no solution that doesn't end in disaster.
    21 Feb 2014, 09:02 AM Reply Like
  • KrankyKraut
    , contributor
    Comments (12) | Send Message
     
    Would be nice for the author explain the reason(s) for the sudden upswing.
    21 Feb 2014, 09:28 AM Reply Like
  • SA Editor Stephen Alpher
    , contributor
    Comments (548) | Send Message
     
    Markets fluctuate?
    21 Feb 2014, 09:29 AM Reply Like
  • James Bjorkman
    , contributor
    Comments (993) | Send Message
     
    The Nikkei jitterbug is making me dizzy.
    21 Feb 2014, 11:37 AM Reply Like
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