How immune to currency woes are Japan's small and mid-cap corporates?

New business opportunities created by structural changes in Japanese society are providing higher growth potential for companies and more options, writes SuMi Trust's Katsunori Kitakura.

Corporate earnings in Japan this year have been affected by the appreciation of the yen, making it difficult to see an increase in market value in the near future. However, the gap between companies experiencing growth in earnings compared to companies experiencing a fall in earnings is widening, and this is increasing opportunities for alpha, generated through good stock selection skills.  In particular, the attractiveness of the mid- and small-cap stockmarket in the 'land of the rising sun' - which are less affected by overseas influences and foreign exchange fluctuations than large...