This post is part of Japan: A Special Report for Investors.

"The Japanese market was already among the most beaten down in the world, even before the earthquake; the Nikkei 225 stock index now has has presented investors with some bargains," notes global specialist Nicholas Vardy.

The editor of The Global Bull Market Alert explains, "Our latest recommendation is based on an expected bounce in the Japanese stock market through one of its biggest and most liquid stocks, Toyota Motor Corp. (TM).

This post is part of Japan: A Special Report for Investors.

"The list of those hurt financially by the earthquake include the Japanese government (so don't buy Japan's government bonds), insurance companies (who will make up their losses through higher future premiums) and the unfortunate Japanese people themselves," says Martin Hutchinson.

The contributing editor to Money Morning explains, "Of course, even among listed companies, there will be some losers. Tokyo Electric Power Co. (TKECY), or TEPCO, is the unfortunate owner of the damaged Fukushima Daiichi nuclear power station.

Tesla Motors (TSLA) and Toyota Motor Corporation (TM) announced a new agreement today to develop an electric version of Toyota's RAV4 sports utility vehicle (SUV). The joint statement sheds a little light on a memorandum of understanding signed by the two automakers last week, which did not specify exactly what kind of cars Tesla and Toyota would be collaborating on.

According to a joint statement, Tesla and Toyota are looking to launch the electric RAV4 in the U.S. market by 2012. The eco-friendlier vehicle will combine the existing RAV4 model with an electric powertrain provided by Tesla. The first prototype has already been built, and testing is underway.

Toyota (TM) is now in the driver's seat of its largest vehicle recall in its U.S. history, and with it a solid reputation is being tarnished with a few industrial-size blowtorches. Although Toyota's U.S. head has actually apologized for the accelerator issues so many Toyota models are experiencing, halting sales of new cars is crimping Toyota's sales every minute of every day. So much, in fact, that the Japanese automaker may be ceding sales to the improbable: U.S. competitors General Motors and Ford(F).

Although Toyota Motor Corp. (NYSE: TM) was first out of the gate with a gas/electric hybrid vehicle back in 1997 with the Prius, the holy grail for much of the consumer automotive industry has been a 100% electric vehicle that lasts a while on a charge, is big and roomy, and has a long range.

Oh, and it must remain comparable (read: affordable) in price to its fossil fuel cousins. The former GM's Chevy Volt project was a very good stab at this (who knows where that project is heading, though), but what about world automotive leader Toyota?

When Ford Motor Co. (NYSE: F) decided not to ask for federal bailout money and General Motors Corp. (NYSE: GM) did decide to take it (out of necessity), one of the truths that finally, finally came out about the state of the U.S. auto industry was the need to match employee costs with our foreign rivals.

This was much to the chagrin of auto unions, but now that the entire American auto industry is a few blinks away from oblivion, apparently labor costs are, well, at the top of the survival guide.

Toyota Motor Company (NYSE: TM) is not only worried about its short-term future, but the futures of about 100 of its U.S. suppliers as well. The automaker offered this tidbit to the automobile task force under President Obama that's currently sizing up whether or not to again help General Motors Corporation (NYSE: GM) and Chysler from dire straights.

Toyota Motor Corporation (NYSE: TM) said this week that it saw a sales downfall from the July-September quarter for the first time in seven years. When auto stalwart Toyota sees a downfall, things must be bad. Of course, it's no surprise that U.S. automakers -- all of them -- are hurting like they haven't in over two decades (or longer, depending on how you look at it).

The reason given by Toyota for the sales halt: declining demand in the U.S. American customers just aren't buying new cars at the rate auto industry execs expected. Call it a lack of money, a lack of credit access to finance new vehicles or folks just buying cheaper used cars. Probably all three are reasons Toyota saw itself sell only 2.24 million new vehicles globally in the July to September timeframe.

Although Toyota saw decent success throughout 2008 in terms of global sales (due to the market share it has in fuel-efficient passenger cars), demand in the U.S. shriveled down to virtually nothing this past summer. Toyota is not even close to being under the financial pressures of either General Motors Corporation (NYSE: GM) or Ford Motor Company (NYSE: F), but the Japanese automaker will probably see sales increase at a sluggish pace as consumer credit unfreezes and huge decreases in gasoline prices spur new auto sales. For Toyota, it has SUVs, trucks and fuel-efficient cars all available to sell -- with the style and marketing customers want -- so any auto upturn will land success in Toyota's lap first.

We have heard a lot of news over the past 12 months about soaring fuel prices and the effect it is having on the major automakers. With record-high oil prices, and gasoline running about $4.10 a gallon, drivers are spending more and more money to fill up their tanks. One of the natural options for people has been to move towards less expensive, small, and simple cars.

General Motors Corp. (NYSE: GM) noticed that fuel-efficient vehicles will be more appealing to consumers, and announced last week plans to reduce production at its truck division (a bit late to join the party, but at least it's something for the struggling auto maker). Toyota Motor Corp. (NYSE: TM) is also slashing truck production during three months at its U.S. plants.

While It is true that most less expensive cars don't offer the same luxury when compared to sedans or SUVs, they come with a lot of options that can satisfy every individual need. Among the cheapest cars available, the article points out Honda's Fit ranked No. 11 at $13,950, a small car whose standard version comes with an adjustable steering column and four-speaker audio system, and is equipped with multiple airbags in the front, rear and side. Other vehicles that follow the same logic are the Chevrolet Aveo, ranked No. 2 at $11,460; the Toyota Yaris, third at $11,550, and the Kia Spectra, fifth at $12,895.

Toyota Motor Corp. (NYSE: TM), responding to U.S. demand for its Prius hybrid vehicle, will begin making the small sedan in the U.S. The decision comes on the back of a weak U.S. dollar -- which makes exports more expensive -- and also reflects the fact that the U.S. is the biggest market for the 45 MPG vehicle.

It will take until 2010 for the Prius to be built in U.S. factories owned by Toyota. In a strange twist of irony, the Mississippi plant that will build the Prius was slated to make Highlander SUVs. Except for the hybrid version of that midsize SUV, consumers continue to shun almost anything with a V6 or larger in the face of "not-going-anywhere" $5/gallon gasoline.

With the U.S. making up over 60% of global demand for the Prius, Toyota has a winner here -- but it needs to spread the wealth into other passenger vehicle products as well. If Toyota can get its hybrid technology affordable in such staples as the Camry and Highlander, it will have a winning place in U.S. sales, even more than it commands now. The Prius is a great first step -- but more need to come. Consumers are mad about gas prices and fickle about which future cars they'll drive -- play to them.

MAJOR PAPERS:

• The Wall Street Journal reported that Toyota Motor Corporation (NYSE: TM) is set to revamp its manufacturing operations in the U.S. in response to rising gasoline prices that have led to a shift toward fuel-efficient models. Officials at the auto maker said key moves may include dropping plans to produce the Highlander car-SUV crossover vehicles in a Tupelo, Mississippi plant, instead producing the Prius at the plant.
• Tomorrow Apple Inc (NASDAQ: AAPL) is set to launch its second version of the iPhone but it also will be opening its APP Store to software developers--an online bazaar--with the intent of bringing more applications to the phone as it has with music via its iTunes stores. Apple's goal is to turn the iPhone into a gadget that more resembles a personal computer, the Wall Street Journal reported.

OTHER PAPERS:

• According to sources, the South China Morning Post reported that Wynn Resorts Limited (NASDAQ: WYNN) is considering a secondary listing in Hong Kong that would raise as much as $3B. The source said that the fund-raising plan has yet to be approved that that the company is a "long way" from a share sale and "might never do it."

WEB SITES:

• In an interview, Bloomberg reported that Former St. Louis Federal Reserve President William Poole said there is an increasing chance the U.S. may need to bail out "insolvent" Federal National Mortgage Association (NYSE: FNM), or Fannie Mae, and Federal Home Loan Mortgage Corporation (NYSE: FRE), or Freddie Mac. Poole said data provided show that the fair value of Fannie Mae's assets fell 66% to $12.2B in Q2, while Freddie Mac owed $5.2B more than its assets were worth during the quarter.

With the soaring oil prices, oil bulls have been benefiting from nice gains lately but there are some pessimistic signs that this may be about to change. The Fed's comments related to inflation stirred some worries among investors that interest rates could be lifted soon. A boost in interest rates will immediately lead to a stronger dollar, and could (and should) result in a sell off in crude.

Talking about this circumstance, SmartMoney is thinking about the best way to protect ourselves against losing money. As a first step, SmartMoney suggests that we reduce commodities and increase our allocation in stocks. To back up this idea, the article cites Simeon Hyman, equity strategist of the portfolio advisory group at Lehman Brothers' private investment management unit, who said the company is currently lighter on commodities and "fully invested" in stocks.

David Reilly, director of portfolio strategies at Rydex Investments, is taking into account the possibility of investing in Japan, which "is the most oil-dependent of all major economies. Reilly cites companies such as Toyota Motor (NYSE: TM) and Canon (NYSE: CAJ) which could benefit from investors' attention due to declines in crude oil prices.

Toyota Motor Corp. (NYSE: TM) announced yesterday that it has developed a new type of fuel cell hybrid vehicle that can travel more then 500 miles on a single tank of hydrogen. That's right instead of the limited mileage from a pure electric car or a gas-required hybrid vehicle this one just needs hydrogen to hit the 500 mile mark.

Fuel cell vehicles, which have no emissions and are one of the most promising technologies for personal transportation, just got that much better. The deal killer for all hybrid vehicle manufacturers is this: there is no gasoline internal combustion engine needed. Toyota's model requires an electric motor and a hydrogen fuel cell. That's it. The Japanese automaker even said the vehicle would be available in Japan this year, but that there are no plans to distribute it outside that country.

Why not, Toyota? Worried about not being able to supply the demand customers globally may have? Having a zero-gas alternative in some of the most gas-dependent consuming countries in the world would really solidify your track record as the auto manufacturer who "gets it." You've already surpassed General Motors Corp. (NYSE: GM) as the world's largest auto manufacturer. Why not make that crown quite a bit bigger?

Toyota Motor Corp. (NYSE: TM) wants to have about 10% of its dealerships in the U.S. become known as environmentally friendly within about three years, according to a recent report in the Wall Street Journal.

Seeing as Toyota just sold its one millionth hybrid Prius this month, the automaker appears to be taking the lead in getting green autos to the consumers who are now feverishly clamoring for them. In other words, $4 gas is not sitting well with many Americans.

But Toyota isn't just talking car sales when it notifies the market that it wants "green" dealerships. The automaker has its own prototype store designs that include geothermal heating systems and recycled car wash water that set it apart in terms of overall operation while it sells those Corollas and hybrid Priuses.

This is the wave of the future -- provide a green dealership to service customers in an energy-efficient way while they purchase that 40 MPG hybrid car from you. Save money and energy from the sale process, in addition to providing an efficient mode of transportation to the customer. Sounds like a win-win on both sides, and Toyota seems to agree. See what the automaker has to say below.

Nissan Motor Corp. (NASDAQ: NSANY), Japan's third-largest automaker, announced this morning higher fourth quarter profit, but forecast a decline in profit for the current year, blaming an unfavorable rising yen and soaring material costs.

Nissan Motor announced that its profit during the quarter jumped 67% to 137.6 billion yen ($1.3 billion). And its income figures were definitely something to cheer about. During its fourth quarter last year, the company had a profit of 82.2 billion yen. Excluding one-time "fifth-quarter" numbers, the company's earnings figures would have showed a surge of 95%.

Despite the positive results, the automaker isn't optimistic about its future earnings and issued a gloomy outlook. The company expects net income for the current year to drop 30% to 340 billion yen ($3.3 billion), which is below the 368 billion yen that analysts at Factset Research predicted. Nissan cited unfavorable currency exchange, higher commodity and energy prices, and increased material expenses.