Japan recovery to continue, says JOHCM's McGlashan

J O Hambro Capital Management's Scott McGlashan believes the recovery of Japan's economy and stock market should continue in 2010, especially if the Bank of Japan eases monetary policy.

McGlashan, senior fund manager of the £182.2m JOHCM Japan fund, says at the same time as quantitative easing ends elsewhere, it may just be beginning in Japan. Last year Japan increased its balance sheet by just 6% he adds, compared to the Federal Reserve and Bank of England which both doubled theirs. "Japan did not join the party last year and no monetary stimulus artificially pushed up share prices," McGlashan says. "At a time when the Fed, ECB and Bank of England are looking for exit strategies, the Bank of Japan has huge capacity to ease. "Over the next year or two the actions ...