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.

1 comments:

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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