Although the Japanese yen surged against the U.S. dollar last week, the Japanese stocks tumbled to their lowest point in two months, taking the exchange traded funds (ETFs) down with them. Japan can’t seem to get above the trend line and continues to lag all major global markets. The stronger yen didn’t help exporters like Honda Motors, and Sony Corp., and financial stocks continue to weigh the market down. Any gains since the U.S. Federal Reserve cut 50 basis points on the interest rate on September 18 are obsolete now. Reuters reports that the U.S. mortgage crisis gave the Nikkei hope that the mess, which came on fast, could be cleared up fast, sending a quick recovery. Concerns are growing as it appears the situation hasn’t completely materialized.
Japanese ETFs and their year-to-date performance:
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.