Looking beyond Japan's 'stagnant economy' headlines

While it is true Japan's domestic economy remains stagnant with negative real GDP growth for the second quarter 2015 figures, it is important to look beyond the headlines.

Net income of listed stocks rose more than 20% in April to June from the previous year, and corporate earnings continue to be robust, supported by an improved pricing environment, weak currency and lower fuel prices. Despite rising wages and falling energy costs, consumption remains weak as households cope with rising prices of many daily products. Not all companies are benefitting from rising product prices: performance among retailers with branded businesses that command pricing power against those that lack such attributes is polarised. Several retailers of high-end apparel bran...