Saxo Bank Video Looks at Post-quake Japanese Investment Opportunities
Released on: March 16, 2011, 2:51 pm
Saxo Bank has released a new Equity Focus video featuring the
company's Equity Strategist Peter Garnry. The video looks at what the
possible implications for investors interested in the Japanese stock
market are in the short and long-term, with the total impact and cost
of the massive earthquake in Japan, related tsunamis and nuclear crisis
still unclear. The Bank of Japan has introduced a series of policy
easing measures but there is still doubt that this will be enough to
create market stability in the Japanese stock market.
Comparing Japan's current situation to the state of the country's market following
the huge earthquake which occurred in the city of Kobe in 1995, Peter Garnry
commented that the stock market remained steady in the days following that disaster
but people underestimated its effects and within four months the market had fallen
by 25%. When asked whether this was due to the Kobe earthquake hitting a large
industrial area of Japan rather than the coastal areas devastated by the recent
quake (although some car manufacturing and electronics plants were forced to stop
production) Garnry replied that the effect on the market will only be known in the
coming months. He also stated that the aftermath of the earthquake could be a great
opportunity for many investors to be exposed to Japanese stocks and subsequently
invest in them.
With the current disaster coming on top of an already exorbitant national debt
status there are increased concerns that the Japanese economy could be pushed back
into recession. Meanwhile, major Japanese exporters are being hurt by forced
shutdowns due to power shortages, while the yen, at least for now, is supported by
the Bank of Japan's massive liquidity injection into the banking system. As it's
still early days there's a chance that just a few months down the road the impact
on Japan's economy and currency might be somewhat different and this could result
in some interesting investment opportunities in large Japanese export driven stocks.
About Saxo Bank:
Saxo Bank is an online trading and investment specialist, enabling clients to trade Forex,
CFDs, Stocks, Futures, Options and other derivatives, as well as providing portfolio
management via SaxoWebTrader and SaxoTrader, the leading online forex trading platforms. The three specialised and fully integrated trading platforms; the
browser-based SaxoWebTrader, the downloadable SaxoTrader and the SaxoMobileTrader
application are available in over 20 languages. The Saxo Bank website features a
wealth of investment advice, trading products, market news and analysis, including forex videos.
Saxo Asset Management accommodates high-net worth private clients and institutional
investors. In 2010 Saxo Bank continued the diversification of its business with
acquisitions of Saxo-E*Trade Bank, a specialist in online investment, and Brørup
Sparekasse, a Danish savings bank.
The Saxo Bank Group is headquartered in Copenhagen with offices throughout Europe,
Asia, Middle East and Australia.
About Peter Garnry:
Peter Garnry is an Equity Strategist at Saxo Bank. In his work, Peter uses a balance
of approaches to thoroughly analyse modern complex equity markets.
Saxo Bank Corporate Communications
40 Bank Street
+45 3065 4300
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