Financial Times (March 14)
The Japanese stock market resembles “the ghost ship Mary Celeste.” Strewn around the decks are signs that the ship should be hopping with activity: the Topix index at a 14-month high, identifiable value stocks in abundance, a comfortably-positioned yen, fresh legalisation of casinos in the bag and a run of record share buybacks…. And yet there is silence.” Volumes have been low during the last three weeks and “overseas investors have been net sellers…with up to Y78bn leaving the index.” This suggests little wind remains in the Abenomics sails and, quite possibly, that traders are cautious ahead of developments from the Federal Reserve and Donald Trump. But it could also mean that overseas investors have written “Japan off as a credible, reform-minded play on global growth and domestic reflation.”
Tags: Abenomics, Buybacks, Casinos, Fed, Investors, Japan, Mary Celeste, Reflation, Topix, Trump Growth, Value stocks, Volumes, Yen
Bloomberg (March 1)
Macau’s going through a bit of a slump. “Players failed to materialize during what is traditionally one of the busiest weeks of the year…. Casino revenue is now projected to plunge 53.5 percent for the month” of February, with annual gambling revenue forecast to decrease nearly 10% for the year. Nevertheless, Macau “remains way ahead of its closest global competitor in Las Vegas.” In 2014, Macau took in nearly seven times more gaming revenue than Las Vegas.
