Japanese recovery phase enters lull

The year 2000 was not successful for investors in the Japanese stock markets. The Topix index, for example, lost 25% of its value over the period because of yen weakness. At the start of 2001, the Japanese economy does appear to be entering a lull in its recovery phase. Without evidence that the consumer is ready to increase his spending, there is a chance that the manufacturing sector, where activity had previously been expanding, will lose momentum, and that capital spending by corporate Japan will also slow. On the positive side, the yen's weakness since last November ought to help th...