Monday, November 5, 2001
Investors were nervous entering last week, overwhelmed by the plethora of U.S. economic data that would be released (aside of course, from earnings reports and terrorist threats) and worries over how bad the data really might be. The data by and large lived up to investors' expectations and were terrible. And profit taking after the previous week's gains added to the downward pressure. Despite this, the markets managed to get a grip on themselves midweek and were able to regain some of their losses. While most indexes followed here fell on the week, the South Korean Kospi managed to climb 1.3 percent while the TSE composite and Mexican Bolsa climbed a tad above the breakeven point. Investors now appear to be looking beyond this year and into 2002 when they expect the impact of the monetary and fiscal stimulus to turn things around.
The Bank of Japan left monetary policy unchanged at Monday's meeting. BOJ Governor Masaru Hayami urged the government and lenders to work faster to clear an estimated 150 trillion yen ($1.2 trillion) of bad loans. Prime Minister Junichiro Koizumi is facing opposition within his own party, slowing progress in pulling the economy out of an 11 year slump.
Looking to the central banks for relief
