Tokyo Stock Exchange Chief Sees Better Year Ahead

Japanese share investors had a forgettable 2010, but the head of the Tokyo Stock Exchange says this year may be one to remember.

CEO Atsushi Saito says a weakening of the yen after the soaring currency dogged the market last year, and possible new government spending, could be the catalysts for Japanese equity gains.

[Atsushi Saito, Chief Executive, Tokyo Stock Exchange]:
"Everybody is expecting some inflated economies - that is mirrored in stock markets all over the world, I think."

The Nikkei touched a 15-month low in August as the yen hit a 15-year high, before a late year rally that pared the decline to just 3 percent on year, still far below global peers.

Tokyo trading volumes have jumped to 2.4 billion shares daily this week as domestic and international investors look to pick up Japanese laggards.

[Atsushi Saito, Chief Executive, Tokyo Stock Exchange]:
"Up until 80 to 81 yen, less than that, I think they can enjoy reasonable returns and profits and that will push up the valuations of the corporations, yes."

With the weak market, the TSE itself has put off public offering plans, as the number of IPOs fell to a near 20-year nadir after the global financial crisis, but Saito says the right upswing may lead the exchange also to list.