Last week was another down week for the Nikkei, albeit very limited, but the Friday close of 13,942 was over 3.5% off the weekly high and the second consecutive week of a sub-14,000 finish. So, while the Nikkei had been showing signs of promise and not simply selling-off on every piece of bad news, a move beyond 14,500 has proven elusive. The N225 is up over 19% from its year-to-date and multi-year low of 11,691, but there are just not enough positive catalysts to push stocks higher, at present, in the face of all the bad news that continues to hit the wires day in and day out. And this month, we have hedge fund redemptions that could be putting further downward pressure on equities. Nikkei 225 futures in Chicago tanked 500 points to 13,765 on Friday, compared to a ...

The Nikkei had a rough go last week indeed, losing 3.6% and the 14,000-level (13,973.73); TOPIX fell to 1,371.57 after a short-lived recovery of 1,400 two weeks ago. No worries though, as Chicago Nikkei 225 futures not only held 14k, but added 140 points to the upside (14,220) setting the stage for a gap up on Monday (Osaka N225 futures: 13,980). The Bank of Japan held its benchmark rate at 0.5%, as expected; meanwhile, the yen has eased to its weakest level against the dollar, ¥108/$1, since late February. Inflation and U.S. i-bank earnings will weigh heavy on sentiment this week. Lehman (LEH: 25.81 +13.70%) leads off on Monday, 6/16, Goldman (GS: 178.29 +6.92%) is up on Tuesday, 6/17 and Morgan (MS: 41.04 +6.93%) reports on Wednesday, 6/18. Circuit City (...

The Nikkei 225 had a positive week, up a modest 1% to 14,489.44, its highest close since early January, but fell short of its calendar year high of 14,691. Remember, keeping things in perspective is important because the N225 opened the year at 15,155 and was trading 18,000-plus last year. In spite of recent resiliency in Japanese equities, it looks like this week will be a tough one, starting with a big gap down on Monday and external factors as well as domestic economic data all putting potential downward pressure on stocks. First, weak jobs data in the U.S. on Friday and an unprecedented two-day jump in oil futures sent U.S. stocks sharply lower. Nikkei 225 futures in Chicago lost 510 points to settle at ...

Last week’s question of resiliency or reluctance at 14,000 for the Nikkei 225 Stock Average was answered, somewhat predictably, with another late-week rally. The Nikkei ended the week higher by 2.3% to 14,338.54 and the broader TOPIX, which rose by the same amount, recouped the 1,400-level (1,408.14) for the first time since January 10th. This week, the N225 is poised to test its Jan. 10 high of 14,388 and perhaps it’s not a stretch to throw in the 14,691 close on the first day of trading this year (its calendar year high close). But don’t get too excited (just trying to keep things in perspective), considering the N225’s 15,155 open on the first day of trading in 2008, let alone the 18,000-plus levels it once traded at last year! ...