Salient to Investors:
Goya Nakao at Sompo Japan Nipponkoa Asset Mgmt said monetary easing won’t create demand, and catalysts for a market rebound are missing – there’s some improvement in sentiment in Europe, the U.S. economy is weakening, and the timing of a rebound in China is being pushed back.
The Topix dividend yield of 2.5 percent is over 3 times the rate of the benchmark 10-year government bond, versus 1.2 times for the S&P 500, 2.3 times for the DAX, and 1.6 times for the and Australian S&P/ASX 200.
Kevin Gaynor at Nomura is bearish on risk assets because economic growth will disappoint substantially over the next 3-4 months.
Bloomberg survey expects the BoJ Tankan report on October 1 to show that business confidence deteriorated for the fourth straight quarter, which would be the longest string of negative readings since Japan emerged from global recession in 2010.