Nikkei drops 3 Pct, Back Below 10,000 ; Dollar Falls

Nikkei Drops 3 Pct, Back Below 10,000

http://biz.yahoo.com/rb/031116/markets_japan_stocks_13.html

Dollar Hit by Violence; Yen Weakens

http://biz.yahoo.com/rb/031116/markets_forex_2.html

:(

These people have their fingers on the pulse of the gold and stock markets. Basically, their impression was that the Nikkei had been artificially propped up before the recent election to give Koizumi's "economic revolution" a boost in the polls. "Wow", the Japanese people might say, as they saw the Nikkei numbers rise, "Koizumi's economic strategy is working." So they would ignore the part of Koizumi's "manifesto" about sending troops to Iraq and vote on the pocketbook issue. Then, after Koizumi's party is re-elected (albeit while losing its absolute majority), Koizumi can claim a "mandate" to undertake everything in his platform. Meanwhile, the speculators take their profits in the stock market.

what a rise in value for the Yen and a loss for the Dollar.

Thanks a lot, BUSH. You made my Yen.

They've been the governing party in Japan since the American occupation in the 1950s. The party actually had its worse showing ever. It now has minority status in the lower and upper chambers.

beginning in 1994. Japan Socialist Party member Murayama was prime minister during that time.

PM Murayama, who held the reins of leadership for about a year and a half, from 6/30/94 to 1/9/96.

The last upper house election, held on 7/29/01, provided Koizumi with a very comfortable majority.

http://news.kyodo.co.jp/kyodonews/2001/saninsen/vote/

If I recall correctly, the LDP's worst showing in upper house elections was back in 1989, when they were caught up in the so-called "three piece set" of scandals and gaffes: Introduction of the consumption tax, the Recruit scandal, and the "josei mondai" (PM Uno had been too cheap with his Number Two lady).

And while the LDP lost (a whopping eight) seats in the recent lower house election, they still ended up with exactly half of the seats. Projections for a much less favorable LDP showing, which were on the Yahoo! Japan web site and which I had discussed here, ended up being off the mark.