Salient to Investors:
Koji Toda at Resona Bank said people are buying Japanese shares because prices are too low, even with the economy in a rut.
Kathy Matsui at Goldman Sachs predicts the Topix will reach 930 within a year and profits will rise 20 percent in the fiscal year starting in April. Matsuis expects the LDP, if it takes power as polls suggest, to combat deflation with public works investment, possible corporate tax cuts, and a re-think of the nuclear phase-out plan.
The Topix trades at 0.9 times book versus 2.1 for the S&P 500 Index and 1.5 for the Europe Stoxx 600 Index.