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May 13

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Japan’s “Lost Decade” Has Given Way to the New Asian Reality - But Only if you Know Where to Look

By Keith Fitz-Gerald
Investment Director
Money Morning/The Money Map Report

KYOTO, JAPAN - On one of my first mornings at our home here, my family and I headed for the Fushimi Inari Taisha shrine. Built in the 8th century by the powerful Hata family, the shrine is best known for the four consecutive kilometers of orange Torii gates covering the mountain on which it was built.

My wife’s family has been coming here for centuries, making it a familiar and comfortable place that we enjoy very much.

It’s also a spot that tends to put things into perspective - like the Bank of Japan’s recent decision to keep its key interest rate at 0.5%.

So why is this move by Japan’s central bank important? That’s easy.

We’ve been hearing for years how the Japanese economy is poised for a recovery. And each New Year is supposed to be "the" year - yet it just somehow never seems to happen - at least according to folks who don’t spend as much time here as I do.

Sure Japan went to hell and back during the "Lost Decade" that stretched from 1990 - 2000, but this country’s economy is recovering - even if the securities markets don’t yet reflect this: They’re up only marginally so far this year.

But that speaks volumes about what investors should expect when thinking about Japan. For instance, the …

http://www.moneymorning.com/2008/05/14/japans-lost-decade-has-given-way-to-the-new-asian-reality-but-only-if-you-know-where-to-look/
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The View From China: As it Continues to Change, China Offers a Growing Number of Profit Plays to Investors Who are Willing to Look

Money Morning Investment Director Keith Fitz-Gerald - an Asia investing expert - has been leading an investment trip through China, taking in that country’s culture and scenery, as well as its investment opportunities. Here is Part VI - the final installment - of a short news series detailing his observations and discoveries.

By Keith Fitz-Gerald
Investment Director
Money Morning/The Money Map Report

IN THE AIR, ENROUTE FROM HONG KONG TO JAPAN - The fiery orange sunrise I see out my window is mesmerizing.

I’m always filled with awe over the dawn of a new day, especially during those long trips when sunrise jolts me awake from the kind of cramped, restless sleep familiar to travelers the world over.

On this day, however, I’m wide-awake. It’s the start of the newest leg of my Asian adventure. I’m tucked into seat 11A, and am quickly lost in thought. I keep thinking about different parts of the 15-day investor trip I just finished leading through Mainland China and into Hong Kong.

In fact, we’ve been off the ground for only five minutes and already I …

http://www.moneymorning.com/2008/05/14/the-view-from-china-as-it-continues-to-change-china-offers-a-growing-number-of-profit-plays-to-investors-who-are-willing-to-look/

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Global Investing Roundups

HP Buys EDS; St. George Agrees to Westpac Takeover; UPS Fights Uphill Battle Against Gas Prices; Cameco Profit’s a "Cake" Walk; Petrobras Post 68% 1Q Profit; High Cost of Oil Dampens Demand; AIG Raises Capital; Yahoo Jumps on Possible Proxy Battle

  • Hewlett-Packard Co. (HPQ) is buying Electronic Data Systems Corp. (EDS) for $13.2 billion in a deal that will create the second largest technology services provider behind International Business Machines Corp. (IBM), the Associated Press reported. Under the terms announced yesterday (Tuesday), HP will pay $25 per share in cash for EDS.

  • Canada’s Cameco Corp. (CCJ), the world’s largest producer of uranium, posted a $132.8 million net income for the first quarter, more than doubling its total last year as sales increased by 45%. Cameco said it could face production shortages next year as it begins a new mine at its flagship McArthur River mine area, Bloomberg reported.

  • Record prices and slower economic growth, particularly in the United States will decrease global demand for oil, the International Energy Agency said yesterday (Tuesday), Reuters reported. "This report sees further downward adjustments to demand, and they may not be the last," the IEA said in its Monthly Oil Market Report.

  • American International Group Inc. (AIG) announced yesterday (Tuesday) that it would raise $17 billion through a combination of stock and debt to prop up a bleeding balance sheet due to two consecutive quarterly losses, Bloomberg News reported. AIG stock gained 79 cents, a 2% increase, to close at $39.16 the day of the announcement.

  • Shares of Yahoo! Inc. (YHOO) jumped 5% yesterday (Tuesday) on reports that Carl Ichan could be preparing to mount a proxy battle to replace Yahoo’s board of directors after they passed on Microsoft Corp.’s (MSFT) $47.5 billion offer. The Wall Street Journal reported that Icahn could hold "as many as 50 million shares" of the Internet search engine firm. Yahoo shares gained $1.30 to close at $26.56.
http://www.moneymorning.com/2008/05/14/global-investing-roundups-60/