Article Abstract:
Japanese share prices have risen since Jul 1996, and this has been due to a number of factors such as low interest rates, a drop in the value of the Japanese yen, and optimism over the problems of the financial sector. The Japanese finance minister has stated that interest rates could have been set too low, and markets have reacted unfavorably. The Bank of Japan has stated that changes in policy are not likely. Interest rate rises would affect liquidity and this would affect US bonds as well as Japanese markets.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
The Japanese economy has benefited from a depreceiation of the Japanese yen, which has helped boost share prices. The economy has been affected by the high value of the Japanese yen which has affected growth of gross domestic product and threatened to deflate the economy further through depressing prices for shares and real estate. The financial system is still under threat and real estate prices may have to be strengthened by the government in order to protect banks with their bad debt problems.
User Contributions:
Comment about this article or add new information about this topic:
Article Abstract:
Japanese manufacturing activity has been affected by poor exports linked to weaker activity in Asian markets. This has affected economic growth which is less than appears since one-off factors have affected figures for 1st half 1996, according to Merrill Lynch. Bond investors do not appear concerned about possible inflationary pressure from economic growth and investors have not yet reached the stage where bonds are sold in order to buy shares.
User Contributions:
Comment about this article or add new information about this topic: