Arirang...Land of the Rising Sun

The Japanese Stock Market seems to be in the winter solstice throughout the year,that is shortest day and longest night.The sun is not rising it seems over in the financial market.

No clear sunny skies so water shortage gonna be a problem as delegates meet at the United Nations- backed Asia-Pacific Water Forum summit, which began today. The meeting, attended by Japanese Prime Minister Yasuo Fukuda, officials from regional governments and aid agencies, aims to find ways to improve water resource management and sanitation. Japan's Crown Prince Naruhito said at the opening of a two-day conference in Beppu, on the Japanese island of Kyushu:- ``Water issues are not being solved as urgently and effectively as they ought to be.'' ``Our region is in the most serious situation in the world."

Back on the economic front,Bank of Japan Governor Toshihiko Fukui said keeping interest rates too low could encourage excessive investment and make economic growth unsustainable.

The world's second-largest economy expanded an annual 2.6 percent in the three months ended Sept. 30, led by exports to China and Europe. The government will use the capital spending report to revise its estimate for gross domestic product Dec. 7.

``Interest-rate levels will keep rising as long as Japan's economic growth is on a sustainable path and prices are stable,'' Fukui said. ``Our decision will depend on the outlook for the economy and a thorough examination of both upside and downside risks.''

The Japanese Yen has been strenghtening against the USD of late and the carry trades problem has its epicentre over here in this part of the region.

In carry trades, investors get funds in a country with low borrowing costs and invest in one with higher interest rates, earning the spread between the borrowing and lending rate.

The Bank of Japan's benchmark rate is 0.5 percent, the lowest among industrialized nations, compared with 6.75 percent in Australia and 8.25 percent in New Zealand.

Now the problem with the Japanese economy is that it has to open up and discard its old concepts in order for foreign participation.

Tracking the Nikkei on Monday 3/12/07.

Look at the many attempted bounce.Whenever you noticed a long black unshaven top and bottom candlestick,move-in and capitalise for the gain.You sure be a winner.See the 4-legged frog,it jump so high to catch its prey!

The Japanese Stock Market has found its bottom.Noticed the November month were a spinning bottom,a dragonfly doji,and a new bullish candle.The sun must be rising.