Despite recent volatility, the Japanese stock market may benefit from a combination of cheaply avail...
Despite recent volatility, the Japanese stock market may benefit from a combination of cheaply available finance, strong earnings and undemanding valuations in 2007.
Rob Weatherston, manager of the BlackRock MLIIF Japan Value fund, said government figures released in March showed the first increase in Japanese national land prices in 16 years, with central Tokyo showing a dramatic 18% rise.
“These gains are being driven by low interest rates, continued strength of the economy and rehabilitation of the banking sector,” he added.
“This break of the downward trend in land values is enormously important for the national psychology and establishes the foundations for a strong recovery in consumption. Corporate earnings are likely to set another record in the year to March 2007 with the Nomura 400 index of leading companies expected to break out of the long deflationary slump and show sales growth of 8%.”