Worldwide, inflation is going to be the big story next year. For Japan, that's going to be a big positive.
For the Nikkei to go up further, gains need to become more broad-based.
The recent loss in Tokyo was triggered by factors like the reshuffle of the Nikkei components and tumbles in U.S. shares. It has nothing to do with economic fundamentals in Japan, which have not worsened at all.
When there's considerable uncertainty in the market, like there is now, banks lead the decline.
I see levels below 17,500 as very attractive for bargain-hunting.
Swings in U.S. stocks always hit here hard, but lingering concern about the health of Japan's banking system is the main factor weighing heavy.
