Today Nikkei 225 closed at +246 points - a robust growth after several weeks of an almost free fall. Growth was lead by banking and automotive industry. This can be seen as a good sign of revival, but is it necessarily so?
First of all, what are the most frequently cited causes?
Most obvious is the fact that US markets closed higher on Friday. Behind this increase were increased retail sales and expectation of further growth in the wake of the year-end holidays.
Another reason mentioned is the weakening yen. However, it actually strengthened today, so this was hardly the reason of the index growth.
So, the most important factor that moved Nikkei up was a purely domestic US information.
It is really amazing how susceptible Japan is to the influence of changes in American economic situation. Especially, when one considers how tightly closed to outsiders Japanese economy still is, especially when it comes to foreign companies entry into Japanese market.
May it be that by having open financial market and de facto closed economy enhances the influence of the largest consumer of Japanese exports? I cannot figure it out in every detail, but the idea looks plausible.
First of all, what are the most frequently cited causes?
Most obvious is the fact that US markets closed higher on Friday. Behind this increase were increased retail sales and expectation of further growth in the wake of the year-end holidays.
Another reason mentioned is the weakening yen. However, it actually strengthened today, so this was hardly the reason of the index growth.
So, the most important factor that moved Nikkei up was a purely domestic US information.
It is really amazing how susceptible Japan is to the influence of changes in American economic situation. Especially, when one considers how tightly closed to outsiders Japanese economy still is, especially when it comes to foreign companies entry into Japanese market.
May it be that by having open financial market and de facto closed economy enhances the influence of the largest consumer of Japanese exports? I cannot figure it out in every detail, but the idea looks plausible.
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