Tuesday, January 22, 2013

Japan Under Abe's LDP and BOJ: Still Long Way to Recovery for Nikkei Average

From the global stock market top in late 2007 through the deep plunge in the fall of 2008 and the central-bank-induced recovery ever since, Japan's Nikkei Average lags badly. It still hasn't regained the minor peak in April 2010, when the average was above 11,000.

German DAX and US S&P500 are within 10% of all-time high, Hong Kong's Hang Seng Index and Singapore's Strait Times Index are within 20%.

Chart created using stockcharts.com's free chart tool (click to enlarge):

Now, the same indices from the global market bottom (except for Shanghai Composite, which bottomed in October 2008) of March 6, 2009. Nikkei's gain is less than 50%, while all the other indices have gained 95% (Hang Seng) to over 115% (S&P500). Strait Times Index and DAX have also gained more than 110%.

Nikkei is down 220 points today, a clear disappointment that unlimited, open-ended quantitative easing doesn't start right away as Japanese yen was bought.


Anonymous said...

Abe probably had his botty smacked and was told what would happen if he continued to shake his rattle.

You can't flog a dead horse. Japan is dead. Divorced so far from the people of this country is it any wonder he doesnt have a clue?

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