Mon, Jun 27, 2016
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 Roundup: Hedge funds shrink as liquidations outpace new launches in Q1: hedge fund news, week 27[more]

    In the week ending 17 May, 2016, HFR said hedge fund liquidations declined narrowly to begin 2016 after rising sharply to conclude 2015, as investors positioned f

  2. Europe - Hedge funds keep powder dry over big Brexit bets, Hedge funds sense profit in Europe shock waves after Brexit vote, Soros warns Brexit may cause pound plunge worse than Black Wednesday, After Brexit: What will happen if Britain votes to leave the UK?[more]

    Hedge funds keep powder dry over big Brexit bets From FT.com: Hedge funds are shying away from big bets on Brexit, with many unwilling to risk further losses having already suffered a painful first half of the year. With the outcome of a UK vote on the country’s membership of the Europea

  3. News Briefs - ’Flash Boys’ get green light to launch stock exchange, Pimco says ‘storm is brewing’ in U.S. commercial real estate, Bankers get ready to rumble at Hedge Fund Fight Night, AIMA Australia celebrates 15th anniversary[more]

    ’Flash Boys’ get green light to launch stock exchange In an investing environment ruled by fast, the newest U.S. public stock exchange is banking on slow. Well, slower. IEX Group, which won Securities and Exchange Commission approval on Friday to go head-to-head with the New York Stock E

  4. Blackstone buys minority stake in New York-based credit hedge fund Marathon[more]

    Benedicte Gravrand, Opalesque Geneva: Blackstone Strategic Capital Holdings Fund, a vehicle managed by Blackstone Alternative Asset Management (BAAM), has acquired a passive, minority interest in Marathon Asset Management, for an undisclosed sum. Based in New York,

  5. Global markets fell, hedge funds gain in mid-June on Brexit, Fed rate concerns[more]

    Komfie Manalo, Opalesque Asia: Global financial markets declined through mid-June, as uncertainty associated with the upcoming Brexit referendum and expected U.S. Fed interest rate hike contributed to increases in volatility across asset classes, data provider