Japan

Scottish Widows Investment Partnership (SWIP) has announced plans to close five of its oeics, including two funds run by the group's head of European equities, Steven Maxwell.

Baillie Gifford's Sarah Whitley says companies seem to be under-promising and over-delivering following the earthquake.

Japan's manufacturing sector has beaten expectations following March's earthquake and tsunami, said Bill O'Neill, chief investment officer of Merrill Lynch, who sees further upside in Japanese equities.

Japan's economy will shrink 0.7% this year because of the massive earthquake and tsunami which struck the country in March, said the IMF.

ON JAPAN

ON JAPAN

European markets climbed this morning on news IMF head Dominique Strauss-Kahn had resigned following sex crime allegations.

The yen has plunged against a basket of currencies after the Bank of Japan said the economy is in a perilous state.

Nick Mustoe, chief investment officer at Invesco Perpetual, says attention has now shifted from global tensions to optimism about the US economic recovery.

Market and economy seen as more distinct following the recent disaster