Has the market got fed up of promises from Abe ?Nikkei – 3.83%

Japanese Prime Minister Shinzo Abe has pledged to loosen rules on businesses ranging from non-prescription drugs to construction. The markets are not impressed ! As such the Stocks
slid as he said the effort won’t begin for months !! Market don’t like a promise of the future , they like it now !! Also people want details not promises .

“It’s hard for the government to raise hopes with the growth strategy — the
third arrow — because it will be some time before it takes effect,” said Junko
Nishioka
, chief economist at Royal Bank of Scotland Group Plc in Tokyo and a
former Bank of Japan official. “The government is going to have to rely on the Bank of
Japan to boost market expectations.”

The growth strategy to be unveiled next week is  part three of the prong attach !It is part of an economic revival plan following fiscal and monetary stimulus. The first two stages were greeted with enthusiasm by investors, stocks BOOMED but now have entered a correction from the biggest rally in a quarter century and the yen has risen against the dollar after touching a four-and-a-half year low.

Abe has vowed to deregulate energy , health , infrastructure and double foreign investment .

Lets see what next weeks delivers .

Tony Evans

http://www.bloomberg.com/news/2013-06-05/abe-pledges-campaign-to-loosen-japan-business-regulations.html

http://www.bbc.co.uk/news/business-22751158

Nikkei 13,014.90 -518.89 -3.83%
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