Japan - Rising dividend yield tempts investors

The dividend yield of the Japanese stockmarket is rising, partly because dividends are growing but also more recently because share prices are falling. Having sunk to a low of 0.8% in January 2006, the yield on the Topix index is today standing at 1.5%. At this level it now exceeds the yield on 10-year Japanese government bonds, a fact not unnoticed by a clutch of financial commentators who have also pointed out that historically this crossover of equity and bond yields has preceded a huge rise in the price of shares. So should investors be hastening to increase their exposure to Japan ...