The rainy season, TSUYU, has started in Tokyo. The weather was nice today, but it is certain we have rainy days ahead. Oh, I am talking about the weather, not about stock markets in Japan.
TOPICS: PM Noda says Reactors are vital for way of life, and he gave green signal to restart 2 reactors at Oi nuclear plant in Fukui Prefecture. This is the first case of restart of nuclear power plants, after 50 of nuclear power plants are stalled in early May 2012. Government says that without the two units, electric supply shortage of this summer will reach as high as 15% in Kansai area.
Governor of Fukui support Noda’s move and ready to approve to the restart of Oi plant. Government-controlled scholars echo the comments of the safety of the reactors. Although not much new safety measures were provided, they conclude that the safety of the Oi plant is guaranteed even the earthquake and tsunami same level as Fukushima occur
We have been puzzled by the decision of DPJ government since it took the office in August 2010. PM Noda should give the alternatives to the people of Japan. We are at the stage to choose Acceptable Uncertainty or Unacceptable Uncertainty.
Electric power shortage during summer is ACCEPTABLE UNCERTAINTY. The possible damage on the nucler power plan is UNACCEPTABLE UNCERTAINTY. The choice is so obvious, and the choice is NOT what PM Noda proposes.
STOCK MARKETS: June 8 June 1 ChangeNikkei 8459.26 8440.25 0.22% TOPIX 717.74 708.93 1.24%
The Japanese markets will start positive affected by the taking-a-breath at Euro-zone. The move after that is really hard to tell, as the markets around the world will soon recognize that the Euro-crisis is far from over.
POLITICS:
Mr.Noda gave green signal to restart Oi nuclear plant. I believe this will lose the support to DPJ fundamentally. Political scene of Japan is very fluid again. This political risk is the largest risk factor to the stock markets. I think the most likely scenario is Noda is going to split DPJ and makes alliance with LDP to form a new government.
ECONOMY:
There are many mixed economic figures during last week. I appreciate the recent announcement of GDP growth of 4.7% pa. NUCLEAR ACCIDENT & EARTH QUAKE
The radiation level of Tokyo is 0.048 sievert this morning. 0.001 lower than that of last week. The life in Tokyo is normal.
OVER