Japan

Defensive shares including utilities giant Severn Trent weighed on the FTSE 100 during morning trading, keeping a lid on gains following a tough week which has seen shares retreat further on US QE fears.

Japan could be the next economy to default as its debt levels are unsustainable, according to Roger Webb, investment director on the credit team at Scottish Widows Investment Partnership (SWIP).

Mark Mobius, executive chairman of Templeton Emerging Markets Group, examines the relationship between the EM giants and frontier markets.

Markets surged overnight on news Japan revised its annualised growth rate to 4.1% - up from an estimated 3.5%.

FINANCIALS

Emerging markets have had a rough time recently. Over the past two and a half years, their economic performance has stayed behind that of developed markets.

Nikko Asset Management is separating out its chairman and CEO roles, and has appointed ex-Nomura executive Takumi Shibata as director and chairman ahead of a planned IPO.

Andrew Graham, manager of the Martin Currie Pacific trust, argues the trend for earnings downgrades must reverse before stock markets can go higher.

GLOBAL

Japanese equities have started to regain some of the ground lost since the end of last week after the Nikkei rose 1.2% in Tuesday's trading.