Japan - Corporate mindset changes for the better

The Japanese equity market posted a modest gain in sterling terms in the second quarter and in doing so delivered a stronger performance than most developed markets. Foreign investors were behind the move as they acknowledged and rewarded the Japanese equity mar-ket's limited exposure to sub-prime losses and its reduced vulnerability to inflationary pressures. Looking ahead, we believe there are good reasons for global investors to continue to focus on Japan. Firstly, Japan has long been suffering from deep-rooted deflation and, should be able to accommodate modest inflation. Secondly...