Sun, Aug 2, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Abenomics and its effect on the Japanese equity market hits all the right notes for ING Investment Management

Wednesday, April 24, 2013

By Beverly Chandler, Opalesque London:

Patrick Moonen, Senior Equity Strategist at ING Investment Management reports that the Japanese equity market is one of the firm’s most preferred markets. "Japan now has the best chance in more than a decade to leave the deflationary environment it has been in" he explains. "It is sustainable to continue with the loose monetary policy without limits until inflation reaches 2% - the Bank of Japan can continue buying Japanese government bonds."

It’s not just the loose monetary policy but also relative earnings momentum in Japan that appeals to ING. Earnings momentum is at its highest level in almost three years whereas in the US, Europe and the emerging markets, earnings momentum continues to be negative. "This is a powerful factor behind the performance of Japanese equities" Moonen says.

The depreciation of the yen to an average of 95 against the dollar has encouraged earnings growth of over 40% to March 2014 and forward valuations that make Japan as cheap as Europe. "But here the Japanese central bank is more flexible than the ECB" Moonen comments.

The third element and consequence of Abenomics is that Japan is really getting the benefit of the doubt that economic growth figures will pick up later this year and into 2014, Moonen says. "These factors differentiate between the regions and Japan scores relatively highly on each of these factors."

In addition, Moon......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  2. Investing - Hedge fund billionaires bet on London as revival gathers pace[more]

    From Bloomberg.com: London’s fund industry is bouncing back, and U.S. billionaires Steven A. Cohen and Ken Griffin are grabbing a piece of the action. Griffin’s Citadel and Millennium Management, a hedge fund run by Israel Englander, have bulked up in London, where asset growth is outpacing the U.S.

  3. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  4. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

  5. Cargill’s Black River Asset to shut down four hedge funds[more]

    Komfie Manalo, Opalesque Asia: Cargill Inc.’s $7.4 billion Black River Asset Management said it was closing four hedge funds with a combined $ 1 billion in assets and start returning investors money over the next several months, various media said. The hedge funds represent 15% of Black River’

 

banner