Japan market summary for Tuesday (Nov. 13)
Nikkei 225 Stock Average: -70.46 (-0.5%) to 15,126.63
Nikkei 225 futures Osaka: -180 (-1.2%) to 15,040, Singapore (SGX) -185 (-1.2%) to 15,035, Chicago (CME) *11/12 -225 (-1.5%) to 15,030
TOPIX: -1.67 (-0.1%) to 1,454.73; Advancers 718 x decliners 897 (unch. 107), New highs 2 x new lows 414
Nikkei Jasdaq: -1.35 (-0.1%) to 1,759.24
Yen: strengthened 0.5% to the 109.80 level against the US$ late in Tokyo; strengthened 0.7% to 160.35 level against the euro

Notes: MOTHERS and HERCULES both traded to the upside, 1.5% and 1.6%, respectively.

The N225’s 8th consecutive decline is the most in more than three years. The TOPIX is trading at a 2-year low.

As widely expected the BOJ voted 8-1 (Mizuno in dissent as usual) to hold at 0.5%. The BOJ has held at 0.5% since February. A rate hike is unlikely by year end and “normalization” is a distant possibility for Gov. Fukui.

Calendar Q3 GDP surprised at 2.6% (annualized) compared to estimates of 1.8%. Q2 GDP downward revised to -1.6% from -1.2%. Full-year GDP expected at 1.8% (downgraded from 2.1% by BOJ in Oct.). Exports continue to play an important role. Consumer spending growth was negligible and weakness in construction was a drag.

Exporters are under pressure due to the rising yen. At 110 against the dollar there is no need to panic, but if the yen approaches parity, then there will be some issues for both exporters and speculative carry traders.

Meanwhile, the outlook for bank stocks is not bright with low lending margins and little need for borrowing among cash hoarding companies. It’s hard to come up with any bullish catalysts, especially for the largest of banks.