Banks Lead Nikkei Higher; Dollar Fragile

[UpInArms]

http://asia.reuters.com/newsArticle.jhtml?type=businessNews&storyID=3449034

SINGAPORE (Reuters) - Tokyo stock investors picked up banks and top exporters to push the Nikkei index higher on Tuesday, while Hong Kong markets sweated on reports of a possible SARS case.

The dollar was steady but fragile ahead of a Federal Reserve meeting later on Tuesday and a weekend gathering of finance ministers from the Group of Seven wealthy nations.

<snip>

DOUBTS ON U.S. ECONOMY

The dollar edged lower, undermined by U.S. data that raised doubts about the strength of the United States' economic recovery, but most traders were waiting to see how the Fed -- widely expected to keep rates unchanged at its policy meeting -- would assess the state of the U.S. economy.

...more...

doesn't look too promising

[madrchsod]

1. japan`s economy

is actually growing at a rate unseen since the 80`s . there is a feeling that japan is coming out of it`s deflation and is worth investing in again. not long ago the japanesse banks were paying borrowers to borrow money..and there were very few takers. the japanesse dodn`t have the luxury of our funding tools in regards to housing finance.

[TahitiNut]

2. They honor labor.

While there's much to dislike about Japan's socioeconomic practices, they do keep the ratio of CEO pay to average worker pay down to about 20:1, they don't discard workers every time the water gets low in the river, and they don't run a bare-bones staff in service businesses - the customer deserves attention. Despite the superfluous comsumerism, Japan still focuses primarily on savings rather than flamboyant consumerism. China, however, with their focus on infrastructure and a social saftey-net, is the economy to watch, IMO.

[Art_from_Ark]

3. "Much to dislike about Japan's socioeconomic practices..."

For example?

[Art_from_Ark]

4. Japanese banks weren't really paying borrowers

If they had been, I would have taken out a loan!

What they were doing was giving a break to some foreign banks on over-night loans so that it appeared that they were paying the borrower. However, the real money was to be made in the exchange rate.

As for not having "the luxury of our funding tools in regards to housing finance", I can only scratch my head at that remark. Nearly every middle-aged Japanese couple I know has a bank loan to pay for their house or condominium. Depending on the bank, rates are flexible, and they now stand at about 1.5% for some cases. Several people I know have also refinanced to get a better rate. Am I missing something here?