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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (38623)	3/7/2002 1:55:48 PM
From: sylvester80	Read Replies (1) \| Respond to of 99280

I agree. A weakening dollar is worth paying attention to.

To: orkrious who wrote (38623)	3/7/2002 1:58:39 PM
From: the_wheel	Read Replies (1) \| Respond to of 99280

Is this one of the Rocker fellers?

To: orkrious who wrote (38623)	3/7/2002 2:04:48 PM
From: limtex	Read Replies (2) \| Respond to of 99280

ork - Great economist- brilliant. Just think all those poor US exporters who will now have to suffer from lower $. How one earth will they get their customers to buy anything. Mr Rocker should get the Nobel prize for economics for this piece of sheer genius. Best, L

To: orkrious who wrote (38623)	3/7/2002 2:07:11 PM
From: Nathan	Read Replies (1) \| Respond to of 99280

Where is his site? Thanks

To: orkrious who wrote (38623)	3/7/2002 2:09:23 PM
From: Softechie	Read Replies (2) \| Respond to of 99280

Japan Officials Take Stock Of Yen's Sudden Strength By JASON SINGER Staff Reporter of THE WALL STREET JOURNAL TOKYO -- Japanese authorities, having sent stock prices soaring through a sudden change in share-trading rules, are now complaining about one consequence of their actions: a rise in the yen. Japan's chief foreign-exchange official, the Finance Ministry's vice minister, Haruhiko Kuroda, warned that authorities are "looking to see if there have been excessive movements" in exchange rates. Mr. Kuroda was speaking after the yen soared 1% against the dollar in Tokyo trading, to 129.22 per dollar from 130.57 in New York, the Japanese currency's strongest level this year. The yen has risen more than 4% in the past week alone. In recent months, a weak yen had helped brighten the outlook of Japan's recession-battered exporters, by increasing the value of their overseas sales when translated back into yen and by enhancing their price competitiveness. A stronger yen would cancel those benefits. But the yen is soaring in value primarily because foreign investors are rushing to buy Japanese shares amid a rally fueled by another regulatory agency. Last month, the Financial Services Agency announced it was implementing new rules on short-selling, or the sale of borrowed stock by an investor who hopes to make a profit by buying an equal number of shares later at a lower price to replace the borrowed securities. Investors say the move was an attempt to shore up Japanese share prices ahead of the March 31 end of Japan's fiscal year, so that the nation's ailing banks can avoid having to post damaging losses on their share portfolios. The FSA also regulates the banking industry, which most private-sector bank analysts deem insolvent and badly in need of a government bailout. The FSA denies any effort to prop up the market and insists its rule change was intended to prevent brokers from manipulating share prices via short sales. Whatever the intent, the action sent share prices soaring, as investors bought stock to cancel their short sales. Japan, which just a month ago struck some observers as at risk of a sharp fall, now has the best-performing major market in the world this year. Stocks are up 10.5% in 2002, and have risen 18.4% since Feb. 20, when authorities suggested they were preparing to change the short-sale rules. Many investors caution that the comeback is fragile. Recent government data, such as falling business inventories and improved corporate sentiment, have led a growing number of economists to conclude the Japanese economy is headed toward recovery. But many investors argue there hasn't been enough good news about the fundamental outlook for companies in the past month to justify the sudden surge in share prices. "The market is up because authorities have put restrictions on margin selling. I think that is the main reason" for the rally, said Akimi Sugioka, a money manager at Meiji Life Insurance Co. Global investors, including pension funds, had owned relatively few Japanese stocks, and because of the rise spurred by the FSA, he says foreigners "have had to increase their holdings' to avoid missing out on gains. Japanese public pension funds were also buying stocks Thursday, said Hamish Ross, head of trading at Instinet in Tokyo. He thinks the market is likely to fall again next month, once the end of the fiscal year has passed, he said. "I think the market will get sold off badly" after the end of the fiscal year, Mr. Ross said. Japanese officials may also throw a damper on the party themselves, because they are torn between wanting both a strong stock market and a weak yen at the same time. Chances are, those goals will conflict. Japanese authorities are eager to keep the yen weak against the dollar because it gives a boost to auto and electronics companies. It also makes imported goods more expensive inside Japan, potentially alleviating the price deflation that is ravaging Japanese firms. Foreign-exchange traders believe that officials are aiming to sustain a level of 130 yen to 140 yen to the dollar . Any push to drive down the yen would highlight how feeble the economy still is, and could lead stock investors to sell again, traders say. Write to Jason Singer at jason.singer@wsj.com. Updated March 8, 2002