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Yoroshiku SAM,
The opportunities for Western financial firms will come from being allowed
to manage a larger portion of Japanese pension monies than the they
currently do. Their expertise in their respective home markets is what
will attract this pension money which is still hugely underexposed to
foreign markets. Thus, Yen will pour out of Japan due to the institutional
need for foreign diversification alone. Also, the lifting of FOREX
restrictions will facillitate this Yen flight. You only have to open up the
Nikkei newspaper to see that demand for foreign currency based financial
products is huge even now.
As for capital inflows, foreign ownership percentage of Japanese stocks has
been on the increase for some time now but is still small when compared
with even today's outflows. As long as the BoJ maintains it's current low
interest rate policy the smart money is betting on further depreciation on
the Yen.
cheers,
Rick Mortellra
tokyo, japan
----------
> From: SAM <magojiro@xxxxxxxxxxxxxxxxxx>
> To: metastock-list@xxxxxxxxxxxxx
> Subject: Re: Fw: YEN
> Date: Monday, September 29, 1997 10:03 AM
>
> >Date: Sun, 28 Sep 1997 18:01:33 -0700
> >To: "Rick Mortellra" <rmjapan@xxxxxxxxxxxxx>
> >From: SAM <magojiro@xxxxxxxxxxxxxxxxxx>
> >Subject: Re: Fw: YEN
> >
> >
> >Japanese deregulation "Big-Band" might create outflow of capital. But,
is
> it true that this will be a great opportunity for Western financial
> industry to get into Japanese markets? As a result, inflow and outflow of
> capital will increase. Thus we probably see increase in competition and
> decrease in transaction cost in long run.
> >
> >How is this going to effect YEN ? Is it more to do with the Japanese
> economy? Also, how speculators will make noise in short run.
> >
> >SAM
> >Tokyo, Japan
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