Nikkei 225 Stock Average: -215.61 (-1.24%), 17,236.16 (range: 17,221.55 – 17,379.52)
N225 Futures – Osaka: -170 (-0.97%), 17,280 (range: 17,240 – 17,390)
TOPIX 1st Section: -18.82 (-1.10%), 1,687.34 (range: 1,683.19 – 1,701.46), Decliners > Advancers: 1,194 x 428 [108 unchanged], Only 2/33 sectors post gains, TOPIX Core 30 hits near calendar year low
JASDAQ: +1.41 (1.78%), 80.50 (range: 79.19 – 80.50)
Yen/US$: last at 118.75
The FT Alphaville blog discusses a new research report by Merrill Lynch that says any Fed easing due to subprime mortgage woes ‘could fuel the biggest bull run ever seen in emerging markets,’ in the words of FT. In short, here’s the scoop on emerging market stocks according to Merrill:
“We continue to believe the asset class is undercapitalised, under-leveraged, under-owned and under-valued.”
This seems to be a valid argument, especially before the hedge herd, mutual funds and lastly, individual investors drive prices up. In fact, Merrill predicts 20% annualized growth to 2,010 (currently 964), through 2010 for the MSCI Emerging Markets Index.
But, how about Japanese small cap stocks?
