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

To: chirodoc who wrote (582)	12/17/1997 1:21:00 PM
From: goldsnow	Read Replies (1) \| Respond to of 3902

>>>my opinion is that in 1-2 years japanese stock market will be far higher Agreed!!! Gold will also be above 450-500 mark. And yes Japanese stopped printing Yens now it is $ turn Do not care about gold bottom (nobody can pick absolute bottom) only care about top...

To: chirodoc who wrote (582)	12/17/1997 8:28:00 PM
From: goldsnow	Respond to of 3902

"Bank of Japan could act again if the dollar got back to 130 yen, but added that there was ''no amount they can spend that could subsidize Japan's weak economic fundamentals.'' Dollar sharply lower after Bank of Japan intervenes 08:20 p.m Dec 17, 1997 Eastern By Al Yoon NEW YORK, Dec 17 (Reuters) - The dollar posted its biggest one-day loss in two years against the yen on Wednesday after the Bank of Japan sold the U.S. unit aggressively and Tokyo announced a big income tax break. The Bank of Japan intervention sparked broad dollar sales, and the greenback was also weaker against the German mark. The dollar fell more than 4 percent from the session high of 131.53 yen to a low of 125.80 as the Bank of Japan shocked the market with more than $1 billion -- and perhaps as much as $3 billion -- in dollar sales to halt the slide of its currency. The dollar fell more than 5.5 percent against the yen in September 1995. It was trading lower at 127.12 yen late in the session from 130.80 on Tuesday and at 1.7740 marks from 1.7810. ''After threatening to intervene all year long, the (Bank of Japan) has finally pulled the trigger,'' said Jeremy Fand, currency strategist at BankBoston. ''They have impeccable timing and knew today would be a great day to do it, given other news that they knew was being announced.'' The intervention followed an announcement by Japanese Prime Minister Ryutaro Hashimoto of a special 2 trillion yen ($16 billion) cut in personal income taxes as part of the Liberal Democratic Party's economic stimulus package. Reaction to Wednesday's plan was far more enthusiastic than Tuesday's lukewarm reception to a panel's recommendation of corporate and other tax cuts worth about 837 billion yen ($6.58 billion), and the LDP's approval of a 10 trillion yen ($80 billion) bond issue. ''(The income tax cut) was a surprise to the market and a step in the right direction, but the market is still trying to figure out exactly what the impact is going to be,'' said Tom Benfer, director of foreign exchange at Bank of Montreal. Traders also said that, while an income tax cut was positive for Japan's economy, their long-standing skepticsm of Japanese stimulus plans remained and the tide had not turned in favor of the yen. Loan charge-offs from Japanese banks and perhaps more bank failures are likely to keep pressure on the yen, and some traders said the market must first see concrete evidence of economic recovery before sentiment turns positive. ''The intervention will only work if the market thinks the stimulus package will work,'' said a trader, ''It's one thing for Japan to announce things. ... Now we need to see them implement them.'' Treasury Secretary Robert Rubin welcomed Japan's policy actions, reiterating his stance that a Japanese recovery led by domestic demand was important to Japan, the United States and the world economy. Another senior Treasury official said the intervention was appropriate and consistent with U.S. concerns. Analysts said intervention rarely comes as an isolated event and the fears of another move by the Bank of Japan -- or the Federal Reserve or the German Bundesbank on behalf of the Bank of Japan -- prevented the dollar from staging a better recovery. ''There's the possibility that the Japanese might not be acting by themselves,'' said a trader at a German bank in New York. ''It wasn't that long ago that Rubin made a comment saying that (the U.S. Treasury was) concerned about the weakness of the yen.'' The Bank of Montreal's Benfer guessed that the Bank of Japan could act again if the dollar got back to 130 yen, but added that there was ''no amount they can spend that could subsidize Japan's weak economic fundamentals.'' In other trading, the dollar was lower at 1.4353 Swiss francs from 1.4395 on Tuesday and the British pound was higher at $1.6512 from $1.6355. The dollar was lower at Canadian $1.4222 from C$1.4255. REUTERS Copyright 1997 Reuters Limited. All rights reserved.