Zeev's Turnips Patch-No Politics (ZEEV)

[Ace Hanlon]

Japanese Stocks: Is Another Upleg Coming?
Bank Credit Analyst

The recent strength of bank stocks signals that investors are becoming more bullish on the outlook for the Japanese economy and equity market.
Stocks were buffeted early last week by the yen’s surge following the G7 meeting, as investors initially feared it could short-circuit the economic recovery. But stocks are quickly recovering as evidence builds that the economy is on solid footing. Bank stocks are up 17% in the past week, buoyed by news that the profit picture is improving. The rise in bank stocks also indicates that the engine of growth is gradually shifting to domestic sectors and away from currency-sensitive exporters. The bottom line is that the next phase of the ongoing Japanese cyclical equity bull market is beginning.


 
This report was published by Daily Insights.