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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Defrocked who wrote (10537)	12/8/1997 10:20:00 PM
From: Defrocked	Respond to of 18056

Headlines/capsules only from the South China Post which IMHO is worth the free subscription. scmp.com (Go to special news on NE Asia for Dec.8 stories. I believe you need to subscribe to get current,Dec.9, stories.) The link provides a contrast in political styles which may be reflected in tonight's equity action. From Japan (1)Japan's government has been depositing part of its foreign currency holdings at some Japanese banks faced with difficulty in procuring funds abroad, the newspaper Asahi reported on Monday. But there was no need for the government to dip into US treasury securities as it could divert profits from operation of foreign currency reserves, the daily said in its evening editions, quoting officials charged with international finance.(Dec.8) From So.Korea (1)Two leading South Korean presidential candidates have pledged to renegotiate stiff terms attached to a massive IMF rescue package, despite a warning that funds might be cut off if they do.(Dec.8) (2)South Korea's leading industrial giant Hyundai Group on Monday announced a massive cut in next year's investment but decided to push ahead with its controversial steel mill project. (Dec.8) (3)The Daewoo group has agreed to buy a debt-ridden auto unit of the Ssangyong group in the first major friendly takeover among the nation's leading conglomerates, the two groups said on Monday. (Dec.8) From Japan but about So.Korea Japanese stocks fell yesterday, led by steel-makers and chemical companies as a weakening South Korean won threatens to erode Japanese competitiveness. (Dec.9) BTW, don't surprised if the Koreans take the IMF and creditor nations to the limit, especially if other SE Asian nations join them. What? You've never heard of several emerging nations all defaulting at once on sovereign debt and having to be rescheduled over years to the debtors' advantage? Probably won't happen but, since its plausible, factor it into your investment risk matrix. BWDIK.

To: Defrocked who wrote (10537)	12/9/1997 9:04:00 AM
From: Defrocked	Respond to of 18056

Last night revisted. Many downs and a suspect up. Mon Dec 8 9:52PM EST Close Australia -.2% -.3% So.Korea -4.2% -6.6% Malaysia -4.5% -7.0% Taiwan -.2% -.8% Hong Kong -1.8% -2.0% Japan +3.2% +3.4% "Don't worry. Buy stocks.Things will work out. Trust what you see in the Japanese market. It's fair and honest. Really. Buy some more. It won't go down. It won't be permitted to go below 16,000 or 15,000 or 14,000 ever, ever, ever!" You know why Yamaichi president Shohei Nazawa was crying in front of the press and the world late November don't you? He was crying because HE GOT CAUGHT. Do you think he didn't know about the Cayman Island accounts? Possibly. Let's say that MOF is actually, finally, honestly implementing banking reform in Japan. Should you buy Japaneses equities now? Ask yourself if Japan's outlook is rosy, even if most of their regional partner's wealth is still declining (a la last night's 6% to 7 % drops in SK and Malaysia) and/or regional competitors may undergo further predatory devaluations for export sales. No need to be a hero here. Be very,very selective with individual securities, maybe, but the market as a whole has risk yet discounted IMHO. BWDIK.