Tampering with the Nikkei

Article Abstract:

The Japanese government's Dec 1992 order that the Nikkei-225 Index would operate simultaneously with a newly formulated index for 15 months is aimed at edging out Nikkei-225 contracts. Nikkei-225 contracts are based on prices quoted on the Tokyo Stock Exchange (TSE,) while the new Nikkei contract would be based on a capitalization-weighted index. The government has taken this step to protect the TSE which has lost money for three consecutive years. It also wants to help small stockbrokerages with little knowledge of index arbitage and safeguard its own interests.

Contracts, Nikkei 225 Index

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Straitjacket for loosening: Japan opts for cautious fiscal policy

Article Abstract:

The Japanese Government's approved budget of 72.4 trillion yen for FY 1993 seems unlikely to generate the necessary economic activity towards the expected GDP growth of 3.3%. The budget emphasizes growth by 14.8% in public works, 2% in defence spending and 6.5% in Asian aid. The government will borrow 12.4% more money from the postal savings' fiscal investment and loan program, and issue 8.2 trillion yen in construction bonds. Tax revenue will, however, be insufficient, and pension outlays, agricultural subsidies and the national debt will be sidelined.

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Out of the rubble

Article Abstract:

Financial experts in Japan are skeptical about the government's decision to establish a new institution to overwrite property loans taken by Japanese banks. Analysts claim that the new proposal will have a minimal financial benefit for Japan's economy and will not enhance the sagging property market. However, the new scheme is expected to help control the problems of Japan's banking industry to some extent.

Banking industry, Investments, Bank investments, Property taxes, Property tax

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