The Nikkei moved above 14,000. That is still below its 2008 high but is nearly the kind of top set recently by the Dow and Nasdaq indexes. The two American measurements are much more likely to sustain their lofty positions than the Japanese index is. Japan’s economy and financial future remains very dim.
Nikkei bulls can point to at least two reasons for the sharp increase. One originates outside Japan. The United States, a tremendous importer of Japanese goods, may have begun a sustainable recovery. This should help large Japan multinationals that have America as their primary market.
The second reason for the Nikkei top is a movement by the Bank of Japan to buy $1.7 trillion in bonds over the next two years. Bank officials hope this will peg inflation at about 2% and increase consumer and enterprise spending. It also could negate reasons for individuals to invest in Japanese paper because yields should…
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