The Nikkei 225 Stock Average dropped 4.4 percent to 9,805.50 at 10:51 a.m

The Nikkei 225 Stock Average dropped 4.4 percent to 9,805.50 at 10:51 a.m

Stocks in Japan extended losses as trading resumed though the worst earthquake on record in the third-biggest economy is unlikely to dent the two-year bull market in global equities.

The Nikkei 225 Stock Average dropped 4.4 percent to 9,805.50 at 10:51 a.m. Tokyo time today. Standard & Poor’s 500 Index futures expiring in June retreated 0.4 percent. Lost production from the Tohoku region where the quake struck might not be enough to spur a recession, Bank of America Corp. said. The Bank of Japan said it will pump a record 12 trillion yen ($146 billion) into the financial system.

http://www.bloomberg.com/news/2011-03-13/global-stock-rally-may-withstand-japan-disaster-as-economic-growth-tops-4-.html

Japan a very willing consumer of US debt

The power of the next administrations stimulus plane lies in the voracious appetite by foreign banks and governments for US treasury securities. Over the Weekend several Japanese banks agreed that they would be willing to buy all the debt the US government can issue .This news of ready and willing customers, and not the stimulus plan it self is what has pushed the market higher since Friday.