I think the market's come to realize that economic growth in the U.S. is not threatened by higher oil and commodity prices. Regional markets also benefited from positive fund flows.

Fundamentally, we believe that at this point in the cycle, after one year of sub-trend growth and facing the prospect of one to two more years of the same, and with inflation peaking, the bank shouldn't be tightening policy further,

Most of the production growth now is from gas, and gas is at a much lower price than oil.

The drop in oil prices appears to be due to continued growth in domestic oil inventories. In addition, there is a realization that efforts to deal with Iran's nuclear ambitions may be protracted over many months and an industry belief that they are unlikely to suspend their oil shipments any time soon.

The drop in oil prices appears to be to be due to continued growth in domestic oil inventories. In addition, there is a realization that efforts to deal with Iran's nuclear ambitions may be protracted over many months and an industry belief that they are unlikely to suspend their oil shipments any time soon.

Aside from the effects of high oil prices, growth in imports in general can be interpreted as a sign that domestic demand is robust, another reason to say the Japanese economy is on the right track.