Since Dec 2002, Yen has not fallen to 122 level against USD. This week, Japan Quarter GDP grew only 0.6% (expecting 0.7%), and so interest rate is kept 0.5%. Before announcement, 1USD was 120Yen, and now is 121Yen. People expect to see 122.5Yen next week.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /> 

This is a chain reaction; Nikkie is weak but export companies like Sony, at year high, is keeping it up. Active Carry Traders are lifting <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />US market with extra money borrowing from Japan. It looks to me this type of trade won’t last long. When there is a shock wave in US, not sure about the reaction in HK and China.

Eric