The tide is ready to turn

A quick glance at a chart of this year's performance of the Nikkei tells its own chastening tale. Having peaked just shy of 21,000 in mid-April, the index has tracked a relentless downward path to its current levels of around 15,000, a fall of over 25%. Behind the falls have been a catalogue of negative inputs which have dented investor sentiment. These have included worries about the stability of the Japanese economic recovery, the high profile demise of retailer Sogo and, more recently, heightening concerns over prospects for Japan's exporters as global growth slows. Meanwhile, recent...