Japanese businesses left behind this year as global equities rallied to a record found a winning strategy in buying back shares the rest of the world preferred to avoid.
Japan’s Topix index rose a third day, to its highest close in almost five months, after the Federal Reserve said U.S. growth is recovering and interest rates will remain low for some time.
Japan Prime Minister Shinzo Abe ordered an earlier review of the biggest pension fund’s portfolio, Health Minister Norihisa Tamura said today, amid speculation the fund is already buying more stocks.
Japan’s Topix index rose, capping a third weekly advance, as investors weighed plans to bring forward an asset allocation review at the country’s biggest pension fund and awaited U.S. jobs data.
Japan’s Topix index fell from a five- week high as disappointing earnings and a stronger yen overshadowed a report showing economic growth topped estimates.
Japan’s yield curve is likely to steepen as incoming Prime Minister Naoto Kan will seek to rein in borrowings and pressure the central bank to extend monetary easing to lift the economy out of deflation, according to Toyota Asset Management Co.
Japanese stocks fell, with the Topix index capping the steepest slump in more than seven weeks, as the yen extended gains against the dollar and the market reopened following a two-day holiday.
"Looking at valuations, it's at a good level to buy, so the downside is limited for the market."
- Masaru Hamasaki on Jul 06, 2014