Why Japanese financials look attractive

There are plenty of mispriced contrarian investment ideas in Japan, writes Eastspring Investments' Dean Cashman.

The market's preference for short-term thematic news flow can powerfully impact share prices. Investment opportunities exist in the most out-of-favour and extreme valuation anomalies which can result from the markets' thematic preferences.    More recently, the thematic trend that the market was focused on was the buying of perceived beneficiaries of weak oil prices as well as the weak yen.  The market has also held a general preference for companies with shorter-term earnings visibility, which in turn can drive shorter-term share price momentum for these stocks, making them appear to...