Japan targets the stock market

The Nikkei at 13,000 is the new target.

Japan's stock market is on a tear today, apparently due to yet another unconventional economic move from its populist right-wing government. After attacking its central bank's independence, "nationalising" industrial stock and announcing a £70bn stimulus package for the stagnant economy, the country's economic ministry made another shock move over the weekend.

Akira Amrai, Japan's economic minister, said in a speech that:

It will be important to show our mettle and see the Nikkei reach the 13,000 mark by the end of the fiscal year (March 31)… We want to continue taking (new) steps to help stock prices rise.

Before and after… the Nikkei jumped 200 points after Amrai's comments.

The Nikkei at 13,000 would require 17 per cent growth in the next two months, which is ambitious. But now that we've had a change to see how the market reacts to such the move, it's looking very possible indeed.

The government announcing it has a stock market target is largely a self-fulfilling prophecy: stock markets tend to price in future gains, and a government announcing that a certain level is now a matter of policy is as near certain as gains can get. Even if it undershoots, it's still clear that the statement has helped Japanese companies. The biggest direct concern is that such a statement might lead to a dangerous asset bubble, but a Nikkei of 13,000 would, if anything, remain underpriced. So long as the government doesn't get carried away with its success, the move seems to be a smart one.

Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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PMQs review: David Cameron's call for Jeremy Corbyn to resign will only help him

 "For heaven's sake man, go!" The PM's appeal was sincere but the Labour leader can turn it to his advantage. 

It is traditionally the leader of the opposition who calls for the prime minister to resign. At today's PMQs, in another extraordinary moment, we witnessed the reverse. "For heaven's sake man, go!" David Cameron cried at Jeremy Corbyn, echoing Oliver Cromwell's address to the rump parliament ("in the name of God, go!") and Leo Amery's appeal to Neville Chamberlain in the 1940 Norway debate.

While it was in his "party's interests" for Corbyn to "sit there", Cameron said, it wasn't "in the national interest". Some will regard this as a cunning ruse to strengthen the Labour leader's position. But to my ear, Cameron sounded entirely sincere as he spoke. With just two months left as prime minister, he has little interest in seeking political advantage. But as he continues to defy appeals from his own side to resign, the addition of a Tory PM to the cause will only aid Corbyn's standing among members. 

After rumours that Labour MPs would boycott the session, leaving a sea of empty benches behind Corbyn, they instead treated their leader with contemptuous silence. Corbyn was inevitably jeered by Tory MPs when he observed that Cameron only had "two months left" to leave a "a One Nation legacy" (demanding "the scrapping of the bedroom tax, the banning of zero-hours contracts, and the cancelling of cuts to Universal Credit"). Cameron conceded that "we need do more to tackle poverty" before deriding Corbyn's EU referendum campaigning. "I know the Hon. Gentleman says he put his back into it. All I can say is I'd hate to see it when he's not trying." 

The other notable moment came when Theresa May supporter Alan Duncan contrasted Angela Merkel with "Silvio Borisconi" (a Hansard first). Cameron replied: "Neither of the people he's talking about are candidates in this election, it's an election I will stay out of ... I was given lots of advice, one of them was not to go to a party with Silvio Berlusconi and I'm glad I took it." Given the recent fate of those who personally mocked Johnson during the referendum campaign, Duncan's jibe may not do May's cause much more help now. 

George Eaton is political editor of the New Statesman.