Japanese Stocks Soaring High

News is floating around the market that the next Governor of Bank of Japan would liberalize the monetary policies. Japanese stocks have been soaring high since then.

Austin, United Kingdom (prHWY.com) March 18, 2013 - News is floating around the market that the next Governor of Bank of Japan would liberalize the monetary policies. Japanese stocks have been soaring high since then. Japan's economy has close links with American economy, as their exports are focused more on the U.S. The surge in Japanese stock offers a range of binary option possibilities for traders. The volatility and volume are more likely to continue.

JFE Holdings Inc. is one of the major steel manufacturing companies in Japan. Its market value rose 8.6%, which offers another great advantage to the Asia Pacific index. Beach Energy Ltd increased 5.8% after Chevron Corporation has agreed to enter into a partnership deal with the energy company on gas exploration. The stock value of Cannon Inc, a leading camera manufacturer increased by 3.3% Tokyo Electric Power Co is the biggest gainer, which rose 17%. Softbank Corp was another noteworthy gainer, which increased 4.8%, after they have obtained a loan to acquire Sprint Nextel Corp. On the other hand, Hong Kong developers fell after the government increased taxes on property transactions. Sun Huang Kai Properties Ltd dropped 1.3%.

Kazuyuki Tearo, Chief investment officer of Allianz Global Investors said, "The bank of Japan has been giving clear signals that the central bank is willing to ease monetary policies aggressively. Things are getting positive for Japanese stocks. However, the outcome of the Italian election may bring some changes in the stock market".

Japanese stocks led gains on speculations that the new Government under the leadership of Prime Minister Shinzo Abe will push more stimuli to counter deflation. Japan's Toix Index, which is the broadest equity measure in the country, increased 1.8%, as the Yen value dropped to the lowest since May 2010. A Government official said that the Prime Minister is taking steps to nominate Haruhiko Kuroda, President of Asian Development Bank as the Bank of Japan governor. Kuroda is a supporter of monetary policy easing, as he believes that it will help to encourage growth. Japanese Prime Minister has also been proposing various measures to stoke inflation in the country. Hence, the Nikkei stock average rose 3.8% in last March, which is the highest level since September 2008.

The U.S dollar topped 94 Yen and the Euro increased as high as Yen 127.69, which is the highest level the currency has seen since 2010. The weakness in the Yen along with hopes that policy will be eased will help revive the Japanese economy. This also resulted in a surge in Japanese stocks.

News reports have been floating that Governor Shirakawa will step down from his post by the third week of March, a few weeks before his term of expiration. Analysts speculate this would prove to be a catalyst in easing the policy of the Japanese Central Bank. In the middle of February 2013, other candidates for the new governor post will be presented. Japanese economists hope that all the candidates will support policy easing at various degrees. Economists at Capital Economics told they anticipate the dollar value to increase to Yen 95 by the middle of the year.

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