Fidelity International sees more upside in Tokyo shares: Japan equity head

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Fidelity International sees more upside in Tokyo shares: Japan equity head
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Fidelity International sees further gains in Japanese stocks next year and has s...

TOKYO - Fidelity International sees further gains in Japanese stocks next year and has started to invest in some value shares selectively, such as some automakers, the asset manager’s Tokyo-based investment chief Takashi Maruyama told Reuters.

He said many manufacturers had cut their full-year profit forecasts, but year-on-year falls in profits are slowing and leading investors to think the worst period could be behind them. But Misumi stocks jumped nearly 10% in less than two weeks since the earnings announcement, because investors have focused on the fact that year-on-year decline in earnings stopped worsening in October-March.

“We have already started buying some of the value stocks selectively. No financial names yet but some auto stocks,” the head of Japanese equities unveiled, adding that buying into value companies remains a divisive subject in his investment team.

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