Things are not looking good for Japanese stocks. Lowest closes were recorded for Nikkei 225 and the Topix Index in over two years. The problem currently is that people are worried America’s congressional committee just won’t be able to agree on a deficit-cutting measure. As well, Japanese export numbers dropped, so that didn’t help confidence in their stocks either.
According to one equities manager at Pengana Capital Ltd., Australia, Tim Schroeders, “there’s likely to be a continuing impasse and people will focus on the stability of the U.S. politically.” He predicts that people are just going to wait it out – not act until they get real clarity as to what their next move should be.