Technology stocks may have bottomed in Japan

Japanese technology stocks have stabilised after heavy drops over the calendar year, but mixed economic newsflow from the US continues to limit near-term growth prospects. Over the calendar year to 20 August, the Nikkei is down 8.7% and the Topix 8.4% in yen terms, although the software sector is even further off, down 15.41% over the same time frame. The relative underperformance of technology stocks over the past two-and-a-half years has been well documented and consensus is emerging that the sector and broader market may well have finally bottomed. The potential for upside o...