Thursday, June 28, 2012

Today's Major Market Move: Japanese TSE Mothers Index Gains 18.4% in June

The Japanese TSE Mothers equity index gained 18.4% in June making it the second best performing equity index for the month behind the Greek FTSE/ASE Midcap Index. It's been a decent month for global equities with 137 indexes out of the 312 that we track (57%) sitting in positive territory. Here's the top 10 performers for the month of June:

Click here to go to the live table.
In general Japanese equities performed reasonably well with many indexes having posted a monthly gain so far in the vicinity of 7% and the benchmark Nikkei 225 index up over 5%. The TSE Mothers index is comprised of high growth / high risk companies so its moves are typically amplified. Even with the positive monthly gain, Japanese equities remained mired in the same long term channel that goes back to the end of 2008. Below is a chart of the cumulative growth of a sampling of 7 Japanese equity indexes compared alongside cumulative GDP growth (both actual and estimated).

Click here to go to the live chart.
Taking a look a Japanese Government Bonds, yields have come up slightly on the long end while remaining flat in the middle and at the short end. Japanese authorities continue to struggle with generating sustained inflation.

Click here to go to the live chart.
Moving over to the currency, the Yen has weakened recently, which no doubt was part of the impetus for the equity gains. The USDJPY has been fluctuating around the 80 level for approximately the past year and a half.

Click here to go to the live chart.

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