U.S. stocks have settled down, but data on the economy is getting worse. Investors are increasingly worried the U.S. economy will fall off a cliff and pull Japan over with it.
Yesterday's sharp fall in bank shares is overshadowing sentiment,
But considering fundamental economic weakness and a shaky performance for U.S. stocks, investors were not ready to push the Nikkei over 10,000,
But a sour-loan solution remains elusive, the supplementary budget is unlikely to do much for the economy, and the future direction for Wall Street remains unclear.
Many had bought high-techs on the back of a weaker yen. But a scenario of the yen's free fall doesn't seem realistic.
Trade was directionless pre-book-closing, though, and concerns about U.S. retaliation and its economy kept buying in check,
The rebound came in due course after the negative factors surrounding Japan's financial system had been factored into share prices.
Even good earnings results from well-known names like Toyota Motor Corp aren't helping sentiment.
There's uncertainty in the market and investors are looking to large-cap shares for relative safety.
A deterioration in overseas demand may gradually affect the Japanese economy, like a body blow.
Apple's announcement deterred investors from buying certain semiconductor-related stocks. But the New York market stabilized as a whole, and that is a big plus.
As has been reported, lending competition is heating up. It seems the market is gradually coming to doubt if all banks have bright earnings outlooks from an expected end to quantitative easing.
Foreign investors actively bought... towards the end of the year after seeing the overwhelming victory of Prime Minister Junichiro Koizumi in the general election.
It looks like the market's nearing a crossroads over whether to worry about the yen's rise.
It looks like the market is nearing a crossroad over whether to worry about the yen's rise.
TDK and Cisco didn't exactly deliver a blow to the market through negative surprises. But they didn't give any clues as to when the high-tech recovery will happen.
There's talk of continued pension fund buying at the onset of the second-half and the yen's move south should provide support.
Investors are now reevaluating U.S.-dependent stocks as hopes slowly emerge for the Christmas season.
Investors are not sure about a consistent rally in the U.S. stock market. The chip sector's momentum last week also looks temporary.
Investors are asking themselves whether the rise in high-tech shares over the past couple of days wasn't a bit too much, too soon.
