First and foremost Kamiyama sees the potential of upward revised earnings forecasts this July/August as the driver behind as much as 18% upside for the TOPIX index first-section.
Recently the market has had some big scares ... investors have been worried about inflation, about interest rate increases, but earnings can overrule those fears.
Japan will look more appealing, relatively, compared to the United States and Europe and it will become easier for investors to go overweight again on Japan in terms of country selection.
Kamiyama mentioned banks as being particularly likely to upward revise earnings. Exporters however, might be hurt by a stronger yen once the Bank of Japan begins raising rates and the yield gap narrows with the U.S.
Click here for a link to the full-text Reuters article.
iShares S&P/TOPIX 150 Index ETF (ITF) 1-year chart:
