INSIDE JAPAN from our view

Nikkei tops 14,000 for first time since 2001  TOKYO, Nov 4 (Reuters) - Tokyo's Nikkei share average rose 1.05 percent at the opening on Friday, clearing the 14,000 mark for the first time in four years. Investors kept their appetite for stocks and bought auto makers, such Toyota Motor Corp., and other companies with strong earnings prospects after the market saw its heaviest-ever turnover in the previous session.

 This momentum is totally different from previous ones in 15 years. Many people begin to think that “I should buy as many stocks as I can afford if there is enough money”. In a book store, it is impossible to neglect books or magazines which feature the bull market in Japan. Almost all newspapers are shouting that this trend is a real one so Japanese economy has finally revived since the darkest ages.

 There seem to be a couple of causes that bring people to feel like buying stocks which were long considered to be such a risky asset that Japanese are not fond of. Firstly, people begin to understand the things will not go worse than today. So it is natural that everyone should think Nikkei stock index is either up or stable. Many economic data, such as unemployment rate, consumer price index or new car sales, show us that Japanese consumer begin to spend more money to expensive goods. So people who are wise enough can make more money just by buying stocks a bit earlier than any other people.

 Second is that stock market becomes closer than ever. It is easy and economical to buy stocks by internet and mobile phone. And the news about stock exchanges is frequently broadcasted. For example, a famous IT company, Rakuten, is now buying a Japanese key TV group, TBS. How many percents of TBS stock Rakuten is now holding is a vivid news for many people in Japan who had not been interested in economy at all.

 Third one is the relief of political stability. Since a historical victory of Koizumi, the regime appears not to change dramatically for more than ten years. One or two elections are not enough for opposite parties to obtain majority. So people are confident in investing money to companies which will benefit from stability.

 Now Japanese Yen is dropping downward so fast that it is the best time for foreigners to buy Japanese stocks.