As Japan hits rock bottom, its small-cap arena picks up

With the Nikkei having hit its lowest level since 1985 in March, there is a growing belief that the market could be turning a corner, fund managers believe. The small-cap arena is seen as presenting buying opportunities at present valuations. Last year, new economy stocks declined very sharply after their larger capitalisation counterparts fell off in response to volatility in the US IT sector. Hisae Toews, a fund analyst at Fidelity Investments, believes the sector is now diverging from the US because of the emergence of attractive valuations relative to growth prospects in Japan. ...