Where are the opportunities after a 'difficult year' for Japanese equities?

Last year was challenging for Japanese equities.

While we usually prefer to talk about the companies rather than the economy, it was interesting to note that 85% of trades last year were on auto-pilot - controlled by machines, futures traders and quant funds. What does a declining population mean for Japan? The TOPIX fell to around 12x forward price-to-earnings (close to where it was during the 2008 and 2012 downturns) and foreign capital flows amplified the level of volatility in the market - with a record ¥12.5trn of Japanese cash equities and futures contracts sold down over the year. However, during periods of market dislocat...