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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (28482)	10/5/1999 8:47:00 PM
From: Don Green	Read Replies (1) \| Respond to of 99985

Stock Market Outlook: Nikkei May Move Above 19,000 Wednesday, October 6, 1999 TOKYO (Nikkei)--The Nikkei Stock Average could move into the 19,000 range by the end of the year, predicts Bunzo Yoda, portfolio manager at Asahi Tokyo Investment Trust Management Co. He sees the Bank of Japan further easing monetary policy, which will cause the yen to weaken in the foreign exchange markets. The BOJ maintains that additional funds in the money markets will be of minimal benefit, but Yoda contends that it is important that financial authorities show their stance against a strong yen. The BOJ left rates unchanged at its previous monetary policy meeting due to excessive pressure from the Ministry of Finance, Yoda says. But since the collapse of the bubble, the strong yen has twice dealt a blow to the economy, in 1992 and 1995, he says. This time there will be no mistakes in response because it is necessary to put the economy on a recovery track, he explains. The Tuesday meeting of the U.S. Federal Open Market Committee will not bring a change in interest rates there, Yoda says. Even if there was a rate hike, there are no fears of a crash, he says, thanks to the robust U.S. economy. Yoda asserts there is little likelihood of the Dow Jones Industrial Average slipping below the 9,200 level -- its level at the end of last year. He is concerned, however, about the impact of the recent rise in gold prices on hedge funds that have been involved in "gold carry" trades. But with the economies of Russia and Asia emerging from crisis, there will be no global financial instability like there was at the close of 1998, Yoda says. The fields of telecommunications, the Internet and nursing all hold promise, he says. He recommends the issues of Softbank Corp. (9984), Benesse Corp. (9783), Secom Co. (9735) and Nichii Gakkan Co. (9792). (The Nikkei Financial Daily Wednesday edition)