Active Investing in Japan

Earnings and monetary policy are key for this week. Both the U.S. FOMC and Bank of Japan (BOJ) have rate decision meetings ending on Wednesday. It goes without saying that market participants are most concerned with the Fed’s decision and clearly expect another rate cut (by 0.25%). Unfortunately, Japanese stocks remain vulnerable because a negative surprise for U.S. market players from the Fed means “sell sell sell” for everyone. continue reading…

Japan market summary for Friday (Oct. 26)
Nikkei 225 Stock Average: +221.46 (+1.4%) to 16,505.63
Nikkei 225 futures Osaka: +210 (+1.3%) to 16,490, Singapore (SGX) +200 (+1.2%) to 16,490, Chicago (CME) *10/25 (%) to -5 (-0.0%) to 16,395
TOPIX: +25.90 (+1.7%) to 1,573.97; Advancers 1,098 x decliners 522 (unch. 113), New highs 10 x new lows 95
Nikkei Jasdaq: +2.49 (+0.1%) to 1,851.12
Yen: mostly flat against US$ at 114.30 level late in Tokyo; weakened 0.8% against euro to 164.25 level
Notes: Emerging stock indices MOTHERS jumped 4.7% and HERCULES rose 1.8%. Briefly, Honda and Sony both jumped 9% following their earnings releases late Thursday. Honda’s results fueled a rally in the automotive sector. Nomura rose more than 4% and Nintendo gained 2% — both reported late Thursday as well.