Expect more volatility in short term

The recovery in Asia's economies has resulted in a pick-up in Japanese exports to the region. As a result, industrial production is rising, thanks in part to the reduction in stock levels through 1998 and most of 1999; and this, in turn, has led to an increase in profits for companies in manufacturing. This should benefit the consumer because higher manufacturing profits may lead to bigger bonuses for employees - which will help to strengthen household income. Improving household incomes should boost consumer spending, which contributes around 60% of GDP. This, in turn, will support the e...