Article Abstract:
The Tokyo stock market saw a drop in share prices in 1st half 1995. The yen was rising in relation to the US dollar and real estate prices were dropping, leading to concern that a slump could threaten. The market has begun to recover since Jul 1995. The yen has dropped in relation to the dollar, and monetary policy is geared to boosting the economy, as is fiscal policy. Weaker banks will be aided by public sector support, and the economic recovery appears to be under way.
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Article Abstract:
The Japanese stock market could be affected by modest profit growth forecasts from companies. This concerns overseas funds. Liquidity growth also appears to be weakening and a rise in bank lending has begun to slow. The stock market had been boosted by liquidity and may not be boosted by earnings once liquidity ceases to be a driving force. Loan growth may still speed up as deflation disappears, and corporate earnings should be boosted by currency weakness.
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Article Abstract:
Japanese share prices have risen in Jun 1996 to levels not seen for four years. This is a key barrier for the market which has been overcome. There is a view that interest rates are not likely to be raised by the Bank of Japan for some months, a view which has helped share prices. Monetary authorities do not wish to see a rise in the value of the Japanese yen, nor do they wish to see share prices fall, so they are reluctant to raise interest rates.
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