Active Investing in Japan

Japan market summary for Thursday (Dec. 27)
Nikkei 225 Stock Average: -88.85 (-0.6%) to 15,564.69
Nikkei 225 futures Osaka: -110 (-0.7%) to 15,600, Singapore (SGX) -80 (-0.5%) to 15,605, Chicago (CME) *12/26 +50 (+0.3%) to 15,735
TOPIX: -8.53 (-0.6%) to 1,499.94; Advancers 532 x decliners 1,066 (unch. 130), New highs 2 x new lows 17; 28/33 sectors posted losses
Nikkei Jasdaq: +10.82 (+0.6%) to 1,726.81
Yen: unchanged against the US$ at 114.24; weakened 0.5% against euro last at the 165.45 level in Tokyo
Notes: MOTHERS -1.3%, HERCULES -1.2%. Nov. housing starts in negative double-digits y/y, but improving sequentially; recovery expected after Q1-2008.

Japan market summary for Wednesday (Dec. 26)
Nikkei 225 Stock Average: +100.95 (+0.6%) to 15,653.54; rally extended to 4th-session
Nikkei 225 futures Osaka: +70 (+0.45%) to 15,685, Singapore (SGX) +35 (+0.2%) to 15,685, Chicago (CME) *12/25 closed for Christmas holiday
TOPIX: +12.44 (0.8%) to 1,508.47; Advancers 1,426 x decliners 228 (unch. 72), New highs 7 x new lows 24
Nikkei Jasdaq: +13.09 (+0.8%) to 1,715.99
Yen: weakened 0.1% against the US$ to the 114.20-25 level; weakened 0.2% against the euro to the 164.70 level
Notes: MOTHERS +4.6%, HERCULES 1.7%.

Japan market summary for Tuesday (Dec. 25)
Nikkei 225 Stock Average: +295.59 (+1.9%) to 15,552.59
Nikkei 225 futures Osaka: +320 (+2.1%) to 15,640, Singapore (SGX) +355 (+2.3%) to 15,650, Chicago (CME) *12/24 +55 (+0.35%) to 15,685
TOPIX: +26.83 (+1.8%) to 1,496.03; Advancers 1,087 x decliners 524 (unch. 115), New highs 4 x new lows 67
Nikkei Jasdaq: +3.68 (+0.2%) to 1,702.90
Yen: weakened 1.0% against the US$ to the 114.15-20 level late in Tokyo; weakened 1.1% against the euro to the 164.40 level
Notes: MOTHERS -0.8%, HERCULES +0.4%.

Japanese stocks continued to face selling pressure last week (-1.7% on the week) until a sharp reversal during the morning session on Friday. In fact, the Nikkei 225 fell below 15,000 early Friday and was in a six-session losing streak until a fractionally higher close Thurs. The N225’s Fri. close of 15,257 doesn’t leave much room for another possible drop below 15,000, especially considering the light trading expected for the week. Note, the Tokyo Stock Exchange is closed Monday for the Emperor’s birthday and Friday (the last day of trading in ‘07) is a half-day. U.S. equities have a half-day on Monday and are closed for Christmas on Tuesday. continue reading…

Japan market summary for Friday (Dec. 21)
Nikkei 225 Stock Average: +225.40 (+1.5%) to 15,257.00
Nikkei 225 futures Osaka: +310 (+2.1%) to 15,320, Singapore (SGX) +265 (+1.8%) to 15,295, Chicago (CME) *12/20 -55 (-0.4%) to 15,155
TOPIX: +11.64 (+0.8%) to 1,469.20; Advancers 1,000 x decliners 607 (unch. 119), New highs 3 x new lows 252
Nikkei Jasdaq: -10.44 (-0.6%) to 1,699.22
Yen: mostly flat against the US$ at the 113.15 level late in Tokyo; weakened 0.2% against the euro to the 162.70 level
Notes: The Nikkei 225 recovered sharply after falling below 15,000 before 10 a.m. Stocks traded higher across Asia. However, TOPIX 2nd Section fell for a 7th-straight session to a new ytd low. Jasdaq also renewed its ytd low. MOTHERS +2.1%, HERCULES +2.0%

Japan market summary for Wednesday (Dec. 19)
Nikkei 225 Stock Average: -177.35 (-1.2%) to 15,030.51
Nikkei 225 futures Osaka: -80 (-0.5%) to 15,090, Singapore (SGX) -95 (-0.6%) to 15,085 Chicago (CME) *12/18 +220 (+1.5%) to 15,295
TOPIX: -12.98 (-0.9%) to 1,456.79; Advancers 287 x decliners 1,336 (unch. 102), New highs 7 x new lows 86
Nikkei Jasdaq: -8.39 (-0.5%) to 1,724.29
Yen: strengthened 0.2% to the 113.00-05 level against the US$ late in Tokyo; strengthened 0.1% against the euro to the 162.75 level continue reading…

Japan market summary for Wednesday (Dec. 18)
Nikkei 225 Stock Average: -41.93 (-0.3%) to 15,207.86
Nikkei 225 futures Osaka: -70 (-0.5%) to 15,170, Singapore (SGX) -100 (-0.7%) to 15,175, Chicago (CME) *12/17 -415 (-2.7%) to 15,075
TOPIX: -2.93 (-0.2%) to 1,469.77; Advancers 805 x decliners 802 (unch. 119), New highs 4 x new lows 186
Nikkei Jasdaq: -7.07 (-0.4%) to 1,732.68
Yen: mostly unchanged against the US$ late in Tokyo at the 113.15 level; weakened by 0.2% against the euro to the 162.95-163.00 level
Notes: MOTHERS +2.1%, HERCULES +0.2%.

Japan market summary for Monday (Dec. 17)
Nikkei 225 Stock Average: -264.72 (-1.7%) to 15,249.79
Nikkei 225 futures Osaka: -330 (-2.1%) to 15,240, Singapore (SGX) -270 (-1.7%) to 15,275, Chicago (CME) *12/14 -175 (-1.1%) to 15,490
TOPIX: -28.55 (-1.9%) to 1,472.70; Advancers 130 x decliners 1,547 (unch. 50), New highs 4 x new lows 126; 31/33 sectors posted losses (ex-coal/oil and electricity/gas)
Nikkei Jasdaq: -15.71 (-0.9%) to 1,739.75
Yen: weakened 0.7% to the 113.10-15 level against the US$ late in Tokyo; strengthened 0.9% against the euro to the 162.60-65 level
Notes: Its back to the days of indiscriminate selling; the high hopes for the smaller caps are on hold for now, maybe creating a new entry point, but nonetheless MOTHERS dropped 6.0% and HERCULES lost 3.7%. Their respective two day losses are 10% and nearly 6%.

The Nikkei recovered 16,000 intra-week last week, but fell back towards the 15,500 level by Friday in an event-heavy week. It seems unlikely the N225 will re-test 16,000 this week as trading slows ahead of the Christmas holiday in the U.S. continue reading…

Japan market summary for Friday (Dec. 14)
Nikkei 225 Stock Average: -22.01 (-0.1%) to 15,514.51; third-straight loss
Nikkei 225 futures Osaka: +30 (+0.2%) to 15,570, Singapore (SGX) -20 (-0.1%) to 15,545, Chicago (CME) *12/13 -340 (-2.1%) to 15,580
TOPIX: -14.85 (-1.0%) to 1,501.25; Advancers 544 x decliners 1,086 (unch. 97), New highs 12 x new lows 53
Nikkei Jasdaq: -4.07 (-0.2%) to 1,755.46
Yen: weakened 0.7% against the US$ to the 112.40 level late in Tokyo; mostly unchanged (fractionally lower) against the euro to the 164.10-15 level
Notes: Volatile session due to December stock index option settlement (SQ). In addition, the BOJ’s tankan reading of confidence among large manufacturers came in worse than expected (see MarketWatch summary), but there was still an early rally thanks to the weaker yen. MOTHERS -4.0%, HERCULES -2.2%