Active Investing in Japan

* Nikkei 225 Stock Average: +41.36 (+0.2%) to 18,157.93; highest turnover ex-SQ since May 10, highest volume ex-SQ since June 7
* Nikkei 225 futures Osaka: +50 (+0.3%) to 18,180, Singapore (SGX) 18,185, Chicago 7/19 — 18,195
* TOPIX: +8.17 (+0.5%) to 1,776.17; Advancers 667 x decliners 936 (unchanged 128), New highs 66 x new lows 65; 18/33 sectors posted gains
* Jasdaq: -0.39 (-0.5%) to 79.07
* Yen weakens ~0.3% against US$ to 122.30; ~168.60 against euro


nikkei 225

Bloomberg has good coverage of former activist fund manager Yoshiaki Murakami’s sentence. Once a Japanese investor hero, now Murakami is mostly remembered for his insider trading and association with destroying individual investor confidence. Smaller cap issues continue to remain out of favor, some trading at ridiculously low valuations. His presence is missed, but in the very least he (hopefully) serves as a deterrent to those contemplating insider trading.

The Dow Jones Industrial Average closed above 14000 for the first time ever Thursday. It took only 58 trading days to make the 1,000 point rise from 13,000 to 14,000, the second fastest on record, after the 23-session rise to 11,000 in spring 1999, says The Wall Street Journal. Keep the following in mind:

Of course, every 1000-point level gets easier to attain because it is a lower-percentage gain; whereas hitting 2000 meant a 100% gain from 1000, Dow 14000 required just a 7.7% gain from 13000. [WSJ]

So, for the Nikkei 225 to hit 19,000, it would need a 5.5% gain from the 18,000 level…