Investor sentiment remains buoyant due to a positive earnings season

The Japanese market has benefited from the improvement in investor confidence we have seen in recent months, although the weakness of the yen this year has been a negative for sterling-based investors (a reversal of the picture in 2008).

Looking forward, it appears the global economy is set to recover gradually while the prospect of favourable company earnings news should also be supportive. However, factors such as domestic politics are leading to some investor caution, although the prospect of change may ultimately prove supportive. Overall, investor sentiment and risk appetite have generally remained buoyant recently, supported in particular by the positive earnings season. Although economic data has been mixed, we see the global economy gradually bottoming out and beginning a mild recovery. However, risks remain, ...