Investors Reassess their Outlook for Japan

The stampede out of Japanese equities resumed on Thursday, sending the benchmark Nikkei 225 tumbling down as much as 6.2 percent.

Prime Minister Shinzo Abe’s disappointing “third arrow” of long term economic reforms and the Bank of Japan’s recent inaction to address bond market volatility is forcing investors to reassess their outlook for the country’s stock market, said experts.

“Obviously, the three arrows that came out from Abe didn’t really meet the mark. The expectation was really, really high, and he missed it,” David Poh, regional head of asset allocation at Societe Generale Private Banking told CNBC on Thursday.

“At this moment, I’m a bit more cautious, it’s not the time to go in, stick your hand out and catch a falling knife. It’s best to sit on the sidelines and wait till after the July [upper house] election,” Poh added.


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