Active Investing in Japan

* Nikkei 225 Stock Average: +206.09 (+1.1%) to 18,138.36, first day in three back above 18,000; highest close in a week; heavy buying from foreign investors; window-dressing by fund managers; weak yen expected to boost profits
* Nikkei 225 futures Osaka: +190 (+1.1%) to 18,160; Chicago [CME] 18,180, Singapore [SGX] 18,145
* TOPIX: +23.76 (+1.4%) to 1,774.88; Advancers 1,218 x decliners 383 (unchanged 130), New highs 82 x new lows 12; 30/33 sectors posted gains
* Jasdaq: +0.21 (+0.3%) to 82.10
* Yen weakness persists — above 123 level against US$

May CPI down slightly for fourth-consecutive month. Unemployment flat, stable at 3.8%. Household spending up 0.4% y/y, up for fifth-straight month. Rate hike expected in August, but slow going from there.

Tankan (quarterly business confidence survey) to be released by Bank of Japan on Monday; U.S. markets close early Tues., closed Wed. — thin trading ahead

* Nikkei 225 Stock Average: +82.99 (+0.5%) to 17,932.27
* Nikkei 225 futures Osaka: +120 (+0.7%) to 17,970, similar closes on CME and SGX
* TOPIX: +10.04 (+0.6%) to 1,751.12; 1,425 x decliners 230 (unchanged 76),New highs 41 x new lows 21; 25/33 sectors posted gains
* Jasdaq:+0.53 (+0.65%) to 81.89
* Yen: back at/above 123 against the US$, approx. 0.3% move

* Nikkei 225 Stock Average: -216.83 (-1.2%) to 17,849.28; 4th straight decline — longest since 2/27 – 3/5 sell-off lasting 5 sessions
* Nikkei 225 futures Osaka: -240 (-1.3%) to 17,850; SGX N225 futures: -210 (-1.2%) to 17,870; CME N225 futures: -110 (-0.6%) to 17,980 [6/26]
* TOPIX: -24.79 (-1.4%) to 1,741.08; Advancers 347 x decliners 1,274 (unchanged 110); New highs 28 x new lows 70; only 3 of 30 sectors posted gains
* Jasdaq: -0.59 (-0.7%) to 81.36
* Yen rises 0.5% against US$ to 122.59, “risk reduction” blamed; no reason to believe the yen carry trade is unwinding
* Market participants concerned about U.S. economy, real estate, sub-prime, 6/27 – 6/28 FOMC

* Nikkei 225 Stock Average: -21.37 (-0.1%) to 18,066.11
* Nikkei 225 futures Osaka: -10 (-0.1%) to 18,090
* TOPIX: +1.00 (+0.01%) to 1,765.87; Advancers 748 x decliners 834 (unchanged 149), new highs 25 x new lows 48
* Jasdaq: -1.18 (-1.4%) to 81.95
* Yen strengthens to 122 (upper 122.9+) against US$ for first time in two weeks on MoF’s warning of carry trade risk.

* Nikkei 225 Stock Average: -101.15 (-0.6%) to 18,087.48
* Nikkei 225 futures Osaka: -120 (-0.7%) to 18,100
* TOPIX: -13.12 (-0.7%) to 1,764.87; Advancers 325 x decliners 1,323 (unchanged 83); new highs 67 x new lows 43
* Jasdaq: -0.06 (-0.1%) to 83.13

* Nikkei 225 Stock Average: -51.67 (-0.3%) to 18,188.63, profit-taking following yesterday’s ytd/52-week/7-yr high level
* Nikkei 225 futures Osaka: -40 (-0.2%) to 18,220
* TOPIX: -11.39 (-0.6%) to 1,777.99; Advancers 546 x decliners 1,033 (unchange 153); New highs 68 x new lows 25; only 8/33 sectors post a gain
* Jasdaq: +0.33 (+0.4%) to 83.19

Domestic issues obviously came under more selling pressure based on the broader TOPIX drop and the A/D; however, notice the number of new highs vs. lows. // The yen touched 124 vs. U.S. dollar late in the afternoon.

Nintendo, Nintendo, Nintendo!!!

* Nikkei 225 Stock Average: +28.62 (+0.2%) to 18,240.30, highest close since May 2, 2000, eclipsing ytd high set 2/26; 6-day rally longest since Dec. 11-18, 2006
* Nikkei 225 futures Osaka: +20 (+0.1%) to 18,260
* TOPIX: +5.66 (+0.3%) to 1,789.38; Advancers 954 x decliners 634 (unchanged 144); New highs 75 x new lows 23; 20/33 sectors posted gains
* Jasdaq: +0.14 (+0.2%) to 82.86
* Nintendo (JP: 7974) (NTDOY.PK) reaches Y45,000 intra-day, a new all-time high, but closes down 0.5% to Y44,300. Its market cap exceeds Matsushita’s (JP: 6752) (MC) and is rapidly approaching Sony’s (JP: 6758) (SNE), in spite of its being sales 1/8 of its CE rivals. Sony investors seem unimpressed w/ CEO Stringer’s remarks at its annual meeting. String says the company is shifting to growth/profitability; has learned from mistakes.
* Mitsui & Co. (JP: 8031) (MITSY) climbed 3% to Y2,585 renewing its highs.

A recent Economist article, “Give peace a rating” (June 2, 2007), discussed the use of indices measuring “peace” to rank countries. The Economist’s sister co. Economist Intelligence Unit has one, found in the accompanying image (see below) from the article. Japan ranks 5th-highest in the EIU’s index. This is obviously a positive factor in terms of FDI and channeling investment funds to equities and making corporate investments. However, one problem Japan has in particular, is political/legal uncertainty — which at least partially explains the comparatively low levels of FDI and slow pace of outside M&A.

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* Nikkei 225 Stock Average: +48.07 (+0.3%) to 18,211.68; nearly 3 months since its last 5-day winning streak; 2/26 YTD and multi-year high: 18,215.35
* Nikkei 225 futures Osaka: +60 (+0.3%) to 18,240
* TOPIX: +3.23 (+0.2%) to 1,783.72; Advancers 820 x decliners 743 (unchanged 169); New highs 89 x new lows 18
* Jasdaq: -0.34 (-0.4%) to 82.72
* Yen strengthens somewhat against US$, but still above 123

* Nikkei 225 Stock Average: +14.09 (+0.1%) to 18,163.61
* Nikkei 225 futures Osaka: -20 (-0.1%) to 18,180
* TOPIX: -7.90 (-0.4%) to 1,780.49; Advancers 467 x decliners 1,147 (118 unchanged); New highs 66 x new lows 18; 9/33 sectors post gains (one unchanged)
* Jasdaq: -0.15 (-0.2%) to 83.06