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Tuesday, November 18, 2003

Japan Pessimism Sets In

As expected, this continues:

Pessimism continued to surround Japanese equities on Tuesday morning as share prices slipped, having already fallen nearly 4 per cent in the previous session as worries surfaced that the market had overheated. The Nikkei 225 average was down 0.4 per cent to 9,746.88 by midday following a 3.7 per cent fall on Monday, while the Topix index was 1 per cent lower at 962.14.

Ryoji Musha, strategist at Deutsche Bank, said: "People have no confidence, so as soon as the momentum turns they start to sell. This shows how speculative the past bull market has been." Shares were pushed lower not by any specific news but by a growing sense that share prices had risen beyond levels justified by the strength of corporate earnings and both the Japanese and global economies, analysts said. Investors became more anxious about the course of world economies on Monday following weak industrial production and retail data from the US and what appeared to be a new terror threat from al-Qaeda.
Source: Financial Times

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