Foreign investors are stepping up purchases of Japanese stocks and that is the main reason the market has held up so strongly in recent weeks.

Declines in commodity prices may cause investors to take a step back from shares of related suppliers.

I think today's rise is no more than a technical bounce.

There is a very real risk that Koizumi's plans to reform the banking sector will be so watered down that they will end up pleasing no one.

While there are concerns about the slowdown in the U.S. economy, what's keeping investors optimistic is the expectation that the Fed is going to ease on interest-rate hikes. That's going to provide support for share prices.

The U.S. market will keep moving in either direction on good or bad news on the war. It cannot be helped, but they are paying less attention to economic fundamentals and corporate earnings news.

Investors are scared of the impact of rising bankruptcies. And on top of that, worries of a war in Iraq and a slowdown in the U.S. economy are really weighing.

The U.S. is starting to show some reassuring signs that growth remains intact, and that's one element of comfort for investors to keep buying Japan.