How Japan Could Benefit From Strong Dollar Environment

Mani

Published onJune 17, 2015

Updated on May 13, 2021

Japan needs a weak yen? Maybe not...

Thanks to its large export orientation, Japan is likely to benefit in a strong dollar environment, notes Morgan Stanley.

Moreover, Pankaj Mantaney and team at Morgan Stanley in their June 15, 2015 research report on “Asia/GEMs Equity Strategy” point out that recent price correction is not enough to warrant an EM upgrade.

MSCI EM missed consensus earnings estimates

The Morgan Stanley analysts note that historically, since 1Q12, the MSCI EM Index has tended to correct after companies begin to report earnings. However, in the only two quarters that MSCI EM beat consensus earnings estimates (viz.: 1Q13 and 2Q14), the market trended upward after the earnings release:

Login required to continue reading.

Setup a free account to get access to this article (no credit card required).

View Full Article

Already a member? Log in here

Mani

Mani is a Senior Financial Consultant. He has worked in Senior Management role in large banking, financial and information technology organizations. He has provided solutions for major banking and securities firms across the globe in the area of retail, corporate and investment banking. He holds MBA (Finance) and Professional Management Accounting Qualifications. His hobbies are tracking global financial developments and watching sports

How Japan Could Benefit From Strong Dollar Environment

MSCI EM missed consensus earnings estimates

Login required to continue reading.

Get Your Business News