Japan equity managers are buying back into domestic companies and cutting their exposure to export-led firms as the slowdown in China and a flat yen weigh on sentiment.
The huge package of stimulus measures unveiled by Prime Minister Shinzo Abe on coming to power in December kick-started the stagnating economy and significantly weakened the yen. The currency fell from 80 yen to the dollar in November to May’s low of 102, but has since been trading below 100 despite an important win for Abe in last month’s elections. In their portfolios, managers are now turning to domestic growth stories which are yet to rally significantly. They also fear some export-led stocks have been overbought, and highlight management issues at Japan’s electrical giants. Jo...
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