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.
Read the full article at http://www.bloomberg.com/news/2012-09-26/japan-stocks-drop-as-more-than-900-topix-goes-ex-dividend.html