The Nikkei had the pre-FOMC jitters last night finishing down 2.75% to close at the medium-term rising trendine. KDDI took it on the chin as the worst performing stock on the day, finishing down 5.3% on bets it will loose market share to NTT DoCoMo...
At the heart of Abenomics is the presumption (or hope?) that a lower yen will stimulate export volume. Indeed September exports denominated in yen were up about 11.5% year over year. But real exports were up just .4%....
The BOJ balance sheet has increased some 39% over the last year and the monetary base has increased about 46%. But, like in the US, the Japanese banks have just been parking their excess reserves right back at the BOJ....
If the Yen/USD keeps strengthening, the odds of Japanese stocks rising appear slim....
