All the economic indicators, including industrial production, are pointing to improvement. That will help bolster investors' confidence in the equity market.
Once interest rates start to rise, the present value of developers' future earnings will start to decrease.
Basically any Japanese stocks can be bought. Strong output is having a ripple effect on other things such as wages and consumption.
The fear is that foreigners have stopped buying. The yen's weakness has been a catalyst for people to get out of banks and into exporters.
A slowdown in the housing market suggests possible declines in consumption. That would be a negative factor for Japanese exporters.
Exporters are gaining as a strong start to holiday sales eased concerns over any sudden slowdown in the U.S. economy, which has been a worry.
Cheaper oil prices will reduce inflation in the U.S. and that's quite positive for the U.S. economy.
Real estate stocks have had a good run, but once interest rates start to rise, the present value of developers' future earnings will start decrease. Shipping lines are in for a tough time.
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