Japan shares gain on bargain-hunting

Wednesday 14th January, 04:31 PM JST

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rajakumar at 08:56 PM JST - 14th January

Nikkei 225, should hover around 8000-9000 pts, global trade has stabilised this point for Nikkei 225 after the falls. It will be slow ride up as global trade adjusts to the new market conditions.

Yen at 89.68 yen to dollar, can be further weakened via more yen printing or buy up of Euros, US dollars,Yuans,Rupees or other currencies in forex. Strengthening Yen is more difficult.
helloklitty at 03:55 AM JST - 15th January

Japan has so much debt, they are going to have to devalue the currency. They will use the same "quantitative easing" techniques as Bernanke is using in the U.S.A. Printing money is the only way to go as there's no room to keep cutting interest rates.

Strengthening the yen would be not only more difficult, it would be suicidal.
Scrote at 11:05 AM JST - 15th January

If both the US and Japan try to devalue their currencies by printing money, the Dollar-Yen exchange rate may not change much.

Japanese government debt is in Yen. If they try to inflate the debt away they may find that the budget deficit increases, as wages and tax revenue stagnate whilst bond interest rates increase.

Japan needs economic growth to pay down its debts, but with an ageing, shrinking population it's not going to happen. Sooner or later we will be faced with large tax increases and spending cuts. What happened in Yubari will be repeated nationwide.