business

Nikkei briefly tops 19,000 for first time in 15 years

14 Comments

The Nikkei stock average briefly topped the 19,000 mark in trading on Thursday, reaching 19,006.80 -- its highest level since April 2000.

By the close, the Nikkei slipped back to end at 18,991.11, 1.43% higher than Wednesday, while the Topix index of all first-section shares rose 1.37%, or 20.96 points, to 1,546.63.

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14 Comments
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The biggest boost for Japan's economy in 15 years and zero comments....

1 ( +2 / -1 )

The biggest boost for Japan's economy in 15 years and zero comments....

Maybe because it is NOT a "boost for Japan's economy".

3 ( +5 / -2 )

The biggest boost for Japan's economy in 15 years and zero comments....

It's called quantitative easing. Free money is creating asset bubbles. The stock market stopped being a proxy for the health of the wider economy many years ago. Now it's more of a prediction market on when investors think government will intervene again.

3 ( +5 / -2 )

The Japanese government's TV station NHK was getting very excited about this but the reality for most people, other than the rich, is that it's totally irrelevant and meaningless as they struggle everyday.

1 ( +3 / -2 )

One positive development behind recent gains in the Nikkei is that a number of companies have seen their share price go up after announcing pay increases. This has been the case with Toyota and some insurance companies for starters.

The nation-wide 'shunto' spring wage negotiations between labor and management are just around the corner, and there is lots of pressure building for companies to ratchet up pay scales.

-1 ( +0 / -1 )

Its a "Fixed System". Time to sell your Nikkei stocks strategically, and stay out of this market. "SELL HIGH, BUY LOW". Foreigners had bought stocks much earlier, near 10,000 to 15,000 area. While Japanese investors at 17,000 to 19,000 area with most near 19,000.

0 ( +0 / -0 )

for most people, other than the rich, is that it's totally irrelevant and meaningless as they struggle everyday

The pension money is getting more heavily invested in the stock market, so it is relevant to anyone praying to receive a Japanese pension in future, even if they don't personally have any exposure to Japanese stocks.

Pension money going into the Japanese stock market IMHO is at least better than putting pension funds into Japanese government junk bonds for ridiculous prices, while the government continues to rack up trillions of yen of extra debt through crazy spending each year.

Still it will be interesting to watch events unfold in the market after the GPIF reallocation is complete. If Abenomics still hasn't miraculously worked by then, I tend to think there will be some decent downside. Of course, there's always the BOJ to keep buying though. That seems to be what central banks are for these days.

1 ( +1 / -0 )

Every bubble bursts. The bigger the bubble, the more severe its failure.

1 ( +2 / -1 )

"Free money is creating asset bubbles...."

The money isn't "free." It was paid in exchange for bonds, which had belonged to the banks. Now those banks don't have those bonds anymore. What's 'free' about that?

"...after the GPIF reallocation is complete."

What makes you think the fund won't continue buying stocks?

-1 ( +1 / -2 )

The last hike before the big dip! Some people are going to loose their shirts, pants and even underwear. If you are a small investor, please TAKE YOUR MONEY OUT AS SOON AS POSSIBLE. Dont be silly. If the Nikkei hits 19000, what is the upside? You have a high chance of loosing a lot versus a small chance of winning a bit. Sounds a nice bet right?

1 ( +1 / -0 )

"...after the GPIF reallocation is complete."

What makes you think the fund won't continue buying stocks?

Once the reallocation is completed, the fund will no longer be moving trillions of yen into Japanese stocks.

Those front running the fund reallocations (or riding the wave) in pursuit of speculative profits will solemnly take their chips off the table once the big bids ease off.

I know I know, you want to ban such practices and have the government control everyone as the "solution".

-1 ( +0 / -1 )

fxgai

I am under the impression the allocation is based on targets and a sustained strategy. Are you saying they are merely temporary? Because in order to maintain the target levels, stock purchasing would have to continue as revenue comes into the pension fund.

"I know I know, you want to ban such practices and have the government control everyone as the "solution".

The opposite. I want the 15,000 yen a month I contribute to be better invested.

As for "control," my wish is that the money doesn't end up in the hands of people who once worked at Lehman Brothers or anyone else who convinced their now-impoverished clients that sub prime backed bonds were indestructible. Yeah, I'm weird that way. Index investing is the solution. No need to pay snake oil salesmen a penny of commissions.

0 ( +1 / -1 )

definition of a bubble; a rising market that you are not participating in

1 ( +1 / -0 )

in order to maintain the target levels, stock purchasing would have to continue as revenue comes into the pension fund.

There's the hidden assumption - net-net, will revenue keep coming into the pension fund? That's a longer term issue though.

In the short term, the GPIF is said to be buying lots of stocks as part of it's reallocation, and when that comes to a conclusion - even if the GPIF were still buying - they won't be buying nearly as much.

Index investing is the solution.

I'm with you on that one.

0 ( +0 / -0 )

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