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

To: Saulamanca who wrote (45446)	4/8/2000 7:07:00 PM
From: Saulamanca	Respond to of 99985

"Greener pastures: Japanese stocks have rallied consistently since the beginning of last year, beating the U.S. stock market. There is at least six months left in the Japanese rally, according to most analysts. The Nikkei 225 index of Japanese blue chips rose 37 percent last year, compared with a 19.5 percent gain for the S&P 500 U.S. benchmark. This year, the Nikkei has gained nearly 7 percent, versus 2 percent for the S&P 500 stocks. A principal stimulus for the advance on the Tokyo stock exchange was last year's surprisingly strong first-quarter economic report, which signaled Japan was extricating itself from recession. The economic outlook overall remains iffy, but there are two reasons to think Japanese stocks will post healthy gains, at least until late summer, says Carl Weinberg, chief economist for High Frequency Economics in Valhalla, N.Y. First, the economic reports for at least the first half of this year will be strong, he said, as government fiscal spending expands in advance of expected September elections called by the ruling Liberal Democratic Party. Second, older Japanese citizens will begin this month to redeem tax-free 10-year certificates issued through Japan's postal savings system. The popular savings program drained cash from the stock market when it was introduced. Now, much of the money will stimulate consumer spending and corporate profits, rather than be reinvested, Weinberg said. Either way, it's good news for Japanese stocks. From April through June, about $200 billion, or 4 percent of Japan's gross domestic product, will roll into the consumer economy.. "We think this money is going to work," Weinberg said." chicagotribune.com