Active Investing in Japan

The Wall Street Journal’s Asialinks daily view includes the following excerpt:

At the same time [referring to an finance professor's commentary on how stricter bank capital requirements may in fact compel Beijing to revalue the yuan faster], China’s foreign-exchange regulator increased the total quota for foreign companies to invest in the domestic capital market to $30 billion, as promised, under the qualified foreign institutional investors program. The quota stood at $10 billion in mid-June. The regulator also said it will increase the size of the investment that domestic residents may make into overseas securities markets, but it didn’t specify the quota amount. (Link to main article)

Market sentiment in Japan has markedly improved in recent trading, with the benchmark N225 up more than 7% in the past two weeks — advancing 1.8% last week to end at 15,956.37, breaking through 16,000 (to 16,107.65 intra-day) for the first time in a month. This week we have four key items, including [1.] domestic machinery order data for October out on Monday (12/10), [2.] the FOMC rate decision on Tuesday (12/11), [3.] the BOJ’s tankan release on Friday (12/14) and [4.] it’s also December options settlement (SQ) on Friday. continue reading…