Hunters of Japan Stock Bargains May Want to Wait for U.S. Vote
Some Japan equity strategists are recommending investors hold off any hunt for bargains until trade tensions cool after U.S. midterms. A possible decline in protectionist rhetoric once congressional elections end in November may allow investors to focus on Japan’s strong earnings that have been overlooked because of fears of a trade war with the U.S., according to analysts. Japanese stocks have borne the brunt of Asia’s slump because many market participants consider the shares to be cyclical, meaning that global investors tend to sell them first on signs of an economic slump.