- "We are reducing our recommended weighting in the Japanese equity market from an overweight 17% to a neutral 8%. We are raising our exposure to Emerging Markets from an underweight 10%, to an overweight 16%, while raising our already overweight 20% exposure to Europe ex-UK to 23%.""
- "Despite the fact that Japanese profitability remains well below peak levels, the recovery is already losing momentum. This contrasts with strong growth in emerging market earnings and impressive Q2 results elsewhere."
- "Performance and valuation varies considerably across EM, but it is in Asia, and especially China, where valuations now appear most attractive. Conversely, several emerging markets sell at lower implied risk premiums than their developed market peers."
- "The relative common performance of the Japanese market remains closely tied to the fortunes of the yen, which may now be vulnerable to a correction."
- "In Europe, improvements in the economy and especially in the banking sector, suggest further outperformance is possible."
Nomura Global Strategy Weekly 20100723
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