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Archive for June, 2013

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Posted On 30  Jun  2013  

Japanese stock market – what next?

The Japanese stock market as measured by the N225 had an amazing run in the 1980’s when starting at at level around 10,000 in 1984 the index moved close to 39,000 at the beginning of 1990 and then has had a relentless slide culminating to level below 8,000 in February 2009, The stock market rally of the 1980 was accompanied by a depreciating Japanese Yen (JPY) and the fall in the market was unusually accompanied by a rising JPY such that by beginning of 2012 it had risen to below JPY 78 to 1 USD. Like the CHF, the JPY is considered to be a safe haven currency in times of economic crisis elsewhere. The crisis caused by the fall in the stock market was so severe that Japanese companies and investors were repatriating money back to Japan. Japan has been in a deflationary spiral for a long time. The