How long Japanamania?
Japan's stellar growth last year has given pause to fund managers who now are looking for indications that the expansion will be shortlived. They need to know whether to pull back their Japanese exposure or continue to buy into the market. But there just aren't enough clear signals for them to decide either way.
Last year, Japan was the proverbial comeback kid in global finance. As the global developed markets' top player, the Nikkei Stock Average has grown 29% in local terms since 2003, a turnaround from its 80% slide in value that started in 1989.
Prime Minister Junichiro Koizumi's landslide election victory convinced Japanese and outside investors that Japan was finally ready for structural reforms. That lent momentum to the economy and lifted the Tokyo stock market by some 30%. Japan-stock funds returned an average 14% and drew $5.3 billion in new money.
Now fund managers are watching the Japanese government's next move ... (more at http://jason-leow.blogspot.com)
Last year, Japan was the proverbial comeback kid in global finance. As the global developed markets' top player, the Nikkei Stock Average has grown 29% in local terms since 2003, a turnaround from its 80% slide in value that started in 1989.
Prime Minister Junichiro Koizumi's landslide election victory convinced Japanese and outside investors that Japan was finally ready for structural reforms. That lent momentum to the economy and lifted the Tokyo stock market by some 30%. Japan-stock funds returned an average 14% and drew $5.3 billion in new money.
Now fund managers are watching the Japanese government's next move ... (more at http://jason-leow.blogspot.com)