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Strategies & Market Trends : JAPAN-Nikkei-Time to go back up? -- Ignore unavailable to you. Want to Upgrade?

To: JEFF CHAPMAN who wrote (501)	11/25/1997 1:27:00 AM
From: Philip H. Lee	Respond to of 3902

Japanese stocks. I was considering buying Japanese stocks, but decided not to for now. The yen is probably going to weaken since the central bank needs to inject liquidity (print yen) into the financial system to bailout financial institutions. From Bloomberg today (regarding the central bank's response to the Yamaichi Securities collapse): "The central bank moved to keep interest rates from rising by adding 700 billion yen ($5.5 billion) to the banking system. The central bank also offered to buy 200 billion yen in government bonds outright, almost twice as much as ever purchased in the past." It looks like the Japanese market is a little closer to bottoming with the recent corrective actions being taken. However, the weakening yen is still a concern for international investors, unless currency risk is hedged with derivatives. Bank stocks, and perhaps export-led multinationals, will probably lead the rally when the Japanese market eventually turns around. Philip