Where should investors look for opportunities in Japan?

Small- and mid-caps overlooked

Pierre Gielen, investment specialist at Amundi, argues that overlooked small- and mid-cap companies could hold the key to getting the Japanese stockmarket moving rapidly again.

With China's stockmarket having slumped by more than 5% for a second time at the end of last month, many investors are rightly concerned about China's economic slowdown, and its effect on neighbouring economies. In nearby Japan, it is thought the impact should be limited, however, perhaps to a 0.1% contraction in Japanese GDP for every 1% decline in Chinese GDP. Japan is already well insulated from the China-led commodity slump as it is not a producer and actually stands to benefit considerably from lower oil prices, which fell to below $30 a barrel last month. Bank of Japan makes ...