Japan's price-to-book ratio returns to global financial crisis trough

ON JAPAN

In recent months Japanese equities have been an area of relative calm within the Asia Pacific region.

Trust banks and retail investors turned net buyers of the market, picking up the baton from foreigners who turned net sellers over the summer. The post-earthquake and tsunami rebuilding has been faster than expected and should have a positive impact on economic growth. Therefore, in the near future GDP growth is likely to be the highest out of the developed markets, offering relative safe haven status. However, slowing global growth especially in China is likely to offset some of the domestic recovery. In terms of Japanese exports, 60% now goes to Asia, with China accounting for aroun...