Economics: Japan story not over yet

Japan has been the talk of the markets over the past week, although most seem to believe the f...

Japan has been the talk of the markets over the past week, although most seem to believe the fundamentals remain favourable despite recent turbulence. Henderson Global Investors strategist Tony Dolphin noted the weakness in Japanese equities is largely due to how far they rose in the second half of 2005. He noted: “Perhaps the simplest explanation for the Japanese equity market’s fall is that it had gone up too far too fast. One way to judge this is to compare the market’s current level with its average level over the preceding six months. Just before their fall, Japanese equities wer...