Mrs. Watanabe, welcome to Abenomics 101.
Christmas in Japan is a widely celebrated, yet discreetly racier, holiday than its American counterpart (think Valentine’s Day, for mature audiences).
This holiday season the party is expanding to Japanese financial markets, as Mrs. Watanabe tosses her panties at new Prime Minister Shinzo Abe, who has vowed to fight deflation in Japan and stimulate growth by any means necessary.
Abe plans to ask the Bank of Japan to play “catch up ball” with the Federal Reserve by raising its inflation target from 1 to 2 percent. And he’s willing to undertake “unlimited monetary easing” to achieve it!
So it’s no surprise that the top of Mrs. Watanabe’s shopping list is Japanese equities – all of them – as she races to dump the yen in favor of shares. The Nikkei may finally get its long awaited bounce…by hook or money printing crook.
(via StockCharts.com – click to enlarge)