Room for optimism aboutJapanese equities

Earlier this year, Japan's stock market was climbing, with investors optimistic about the recovery in the global economy. The OECD Leading Indicator had turned up and first quarter GDP data in the US ' the main driver of global growth ' was strong, with a year-on-year rise of 5.0%. Because the fortunes of Japan's numerous exporters closely correlated with the OECD leading indicator, investors pushed Japanese shares higher. Between early February and late May, the Nikkei 225 index shot up by over 25%, outperforming most other markets, both developed and emerging. In the last two months,...