Old economy stocks look for new economy options

Old economy sectors, such as industrials and resources, are performing well in the Japanese market as companies tap into new economy business. The Toppix non-ferrous metals index has returned 78.81%, in sterling terms, over the year to 4 December 2000 while the glass and ceramics sector has returned 74.95% and the oil and coal sector, 44.62%. Alistair Way, fund manager on the Japanese equities team at Baillie Gifford, says many have been surprised that old economy companies have been at the forefront of the new economy in Japan. He says non-ferrous metal companies now have thriving opt...