Market moving towards technology and telecoms

Sector rotation in Japan has seen traditionally defensive sectors such as pharmaceuticals and utilities sold down in favour of more cyclical areas such as technology and telecoms. The move, which has come despite markets remaining relatively flat, is a reflection of forecasts for global growth to reappear next year, according to Denis Clough, Japan fund manager at Schroders. For utilities, which in the past three weeks has given away much of the gains made since March 2000, investors took the view that valuations could not go higher, adds Simon Donne, Japan fund manager at Threadne...