The 10-yr government bond yield in Japan is now around 0.5%, following an almost linear decline
GFIA's latest Research Insights tells us that in the month of June, MSCI Asian Pacific ex Japan was up, 1.3%. Japan itself, meanwhile, experienced something of a stock price surge - Topix 1000 gained 5.3%, Nikkei 225, 3.9%.
Japanese outperformers "included city and regional banks, consumer electronics, and steel companies," while the underperforming side of the market included telecom, retail operations, and utilities. Given Japan's upbeat numbers, the MSCI Asia Pacific [inc. Japan] finished up 2.8%.
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As the line for TSE Mothers on the above table indicates, small- and mid-cap stocks in general outperformed the large-cap indexes.
Unsurprisingly, then, Japan-centric managers "with a small and mid-cap focus strategy reported good returns" for June "despite underperforming the general market." It was a case of the tide floating the boats. But, since some of the boats were designed not to be correlated with the tide, they didn't float as