Company profits expected to rise

In the year 2000, the Japanese equity market suffered a hangover from the exuberance of 1999. New Japan stocks corrected sharply in the first quarter as Hikari Tsushin and others reported disappointing figures. The halving of the Nasdaq index from its peak in March 2000 also hurt sentiment in Japanese tech names. Litigation worries hit individual stocks such as Bridgestone, Toyoda Gosei, Mitsubishi Motors, and Snow Brand Milk. Finally concerns over a slowing economy and the impact on corporate profitability has negatively affected the whole market. Judging by economists' forecasts, growth ...