Active Investing in Japan

* Nikkei 225 futures Osaka: +270 (+1.5%) to 17,860
* TOPIX 1st section adds almost 22 points, or 1.3% to 1,755.68; Advancers 1,286 x decliners 324 (unchanged 118); 101 new highs x 11 new lows; 31/33 sectors posted gains
* JASDAQ: +0.12 (+0.15%) to 80.78

The Chinese govt. raised the stamp tax for equities trading to 0.3%, from 0.1%, which effectively sent shares down broadly, worst for B-shares at ~-9%.

Selling in China doesn’t appear, at least this point, that it will spill over too much, as it did in late Feb. In fact, there are some asking whether China won’t head to new highs as investors buy on the sell-off.

* Nikkei 225 Stock Average: -84.30 (-0.5%) to 17,588.26
* Nikkei 225 futures Osaka: -90 (-0.5%) to 17,590
* TOPIX 1st Section: -4.15 (-0.2%) to 1,733.75, Advancers: 706 x decliners 898 (unchanged 120)
* JASDAQ: -0.49 (-0.6%) to 80.66

* Nikkei 225 Stock Average: +84.97 (+0.5%) to 17,672.56
* Nikkei 225 futures Osaka: +80 (+0.45%) to 17,680
* TOPIX 1st Section: +13.52 (+0.8%) to 1,737.90; Advancers 1,110 x decliners 484 (unchanged 128), 29/33 sectors posted gains
* JASDAQ: +0.38 (+0.47%) to 81.15

The Nikkei lags the ytd returns of many overseas markets, but its long-term up trend is in tact. The market seems pretty balanced and range bound.

* Nikkei 225 Stock Average: -215.76(-1.2%) to 17,481.21
* Nikkei 225 futures Osaka: -210 (-1.2%) to 17,450
* TOPIX 1st Section: -22.57 (-1.3%) to 1,715.54; Advancers 241 x decliners 1,413 (unchanged 77)
** 134 new lows were made Friday versus just 17 new highs
* JASDAQ: +0.91 (+1.15%) to 80.28

Japan April CPI -0.1%, in-line w/ expectations, improvement over March’s -0.3%. Near-term weakness forecast; price recovery possible in Q4 with BoJ follow-on hike. (See Reuters’ coverage of Japan’s April CPI.)

U.S. market closed Monday

Former Federal Reserve Chairman Alan Greenspan speaks and markets move. Fortunately this time around, there was a rather muted response, as the Shanghai Composite lost 0.5% and Japanese indices lost 0.1%; U.S. stocks fell into negative territory erasing earlier gains. China’s B shares fared worse, but the reasoning behind the selling is beyond this summary post.

* Nikkei 225 Stock Average: -8.15 (-0.1%) to 17,696.97
* Nikkei 225 futures Osaka: -70 (-0.4%) to 17,660
* TOPIX 1st Section: -1.97 (-0.1%) to 1,738.11; Advancers 573 x decliners 1,024 (unchanged 134)
* JASDAQ: -0.18 (-0.2%) to 79.37

* Nikkei 225 Stock Average: +25.07 (+0.1%) to 17,705.12

* Nikkei 225 futures Osaka: +40 (+0.2%) to 17,730

* TOPIX 1st Section: +8.54 (+0.5%) to 1,740.08; Advancers 1,053 x decliners 574 (unchanged 104)

* JASDAQ: +0.19 (+0.24%) to 79.55

* Dollar/Yen steady at ~121.5, attractive for exporter stocks

FYI, see the chart below for the latest American Association of Individual Investors [AAII] survey released 5/21:

* Nikkei 225 Stock Average: +123.18 (+0.7%) to 17,680.05

* Nikkei 225 futures Osaka: +130 (+0.7%) to 17,690

* TOPIX 1st Section: +20.87 (+1.2%) to 1,731.54; Advancers 1,239 x decliners 386 (106 unchanged)

* JASDAQ: +1.40 (+1.8%) to 79.36

Sony (JP: 6758) (SNE) at five-year high; bank stocks rally ahead of mega banks’ Mitsubishi UFJ and Mizuho FG earnings.

The following excerpt is from a daily WSJ alert:

OUTWARD FLOWS: As U.S. investors chase profits overseas, there may be an unintended consequence: pressure on the American dollar. Attracted by strong stock-market performance away from home, individuals and institutions in the U.S. are pouring cash into foreign stocks and bonds. In recent months, as Joanna Slater reports, flows into those investments have reached record levels. Meanwhile, U.S. economic growth has hit its slowest pace in four years, and only brisk consumer spending has kept it from falling further. (emphasis added)

Read the related Wall Street Journal article (click)