U.S. investors are returning to Japanese stocks as confidence recovers from the initial shock of the Middle East crisis, according to Goldman Sachs Japan¡¯s chief Japan equity strategist.
The shift, driven partly by a stabilizing yen, has spurred U.S. capital inflows into the tech-heavy Nikkei 225 Stock Average, as reflected in its divergence from the Topix, said Bruce Kirk. With Japanese policymakers unlikely to tolerate a significant yen decline past current levels near 160 per dollar, unhedged U.S.-based investors may be more willing to buy Japanese stocks, he added.
¡°Japan actually looks like it¡¯s in a reasonably solid position,¡± Kirk said in an April 20 interview. ¡°The buying comes in very very quickly¡± once the market shifts its focus from near-term to mid-term, he said.
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