14,000, by Tim Duy: Seems like just yesterday Japanese policymakers were looking to push the Nikkie to 13,000. It even seemed like a overreaching at the time. Here is Matthew Boesler at Business Insider:
The 13,000 index target implies around 17 percent upside in February and March. The pace may sound ambitious, but then again, Japan is one of the hottest momentum trades in the world right now.
Today the Nikkei pushed past 14,000:
Note too that the 10-year Japanese government bond holds well below 1 percent - fears that aggressive policy would cause rates to skyrocket are once again proved unfounded.
So far, so good for Abenomics. Now the question is will policymakers back off soon after seeing such positive results? We have seen such stop-go policy in Japan in the past when attention turns back toward the size of the deficit. Are Japanese policymakers in it for the long-haul?