The 'structural evolution' taking place in Japanese equities

Many investors are worried about the potential impact of the coronavirus. Only one case has been reported in Japan so far, though the authorities have quarantined a cruise ship with affected passengers on board.

On the corporate front, Nintendo has warned it is having trouble producing the Switch console in China, which will affect supplies at home, while Sony's limited factories in China have resumed operations.  John Redwood on a 'pioneering' Japan Otherwise, negative newsflow is modest and markets are holding up. Japanese equities remain out of favour - not helped last year by trade friction and a weakening global demand that led to earnings downgrades. Around two thirds of the profits of component companies in the TOPIX are generated outside Japan, so it is sensitive to the state of th...