FYI: From hot to not and back again, Japanese stocks have been a confusing lot the last couple years.
Japan's stock market is flying after the Bank of Japan surprised the world last week by increasing its bond-buying stimulus program. The Nikkei 225 index jumped nearly 5 percent the day of the announcement, and it's back in the black for the year. In the spring, it was down nearly 15 percent. That follows a stellar 2013, where the Nikkei soared nearly 60 percent.
Underlying all the market moves is investor confidence in whether Japan can jumpstart its economy's too-weak inflation. Japanese shoppers and companies have grown accustomed to prices staying the same, which encourages them to delay purchases and investments. That weighs on consumer spending and restricts the economy.
To raise its inflation rate and jolt Japan, the country's central bank is pushing stimulus. Last week's surprise move caused the value of the yen to drop. That serves to make imported goods more expensive for Japanese shoppers and also boosts revenue for Japanese exporters.
Even after the big jump for Japanese stocks, they remain cheaper than their U.S. counterparts, says Taizo Ishida. He is the lead manager of the Matthews Japan fund, whose $683 million in assets makes it one of the biggest to focus solely on Japan. He recently discussed what U.S. investors can expect from the market. Answers have been edited for clarity.
Regards,
Ted
http://bigstory.ap.org/article/039ca5a0a61e457397f041c017b307fd/what-japans-stimulus-jolt-means-investorsM* Snapshot Of MJFOX:
http://quotes.morningstar.com/fund/f?t=MJFOX®ion=usa&culture=en-USLipper Snapshot Of MJFOX;
http://www.marketwatch.com/investing/Fund/MJFOX?countrycode=USMJFOX Is Rank #3 In The (JS) Fund Category By U.S. News & World Report:
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David