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! ...

What to watch: Thursday, May 29: U.S. Revised Q1 GDP; Friday, May 30: CPI for April (May for select metropolitan areas); April - Industrial Production; April - Household income and expenditure survey; April - New housing starts; April - Unemployment and Ratio of Job Offers to Applicants Ongoing: Commodities and forex volatility — more inflation reporting chicanery. Protectionist tendencies may be pressured by a report (and the realization) of $3.2 billion in cross-shareholding losses in FY2007, as well as greater urgency from within for acceptance of foreign investment. In the meantime, we can enjoy watching the latest round of TCI (The Children’s Investment Fund (UK)) vs. J-Power (JP: 9513). Markets: The Nikkei starts the week against a shortened U.S. trading week for the Memorial Day holiday. Making matters worse is last Friday’s bout of selling that did ...