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Stock Investors Reluctant to Return to Japan Despite Rally

  • Fund manager allocation to Japan at two-year low, BofAML says
  • Rebound may fade as market is in ‘flowless rally’: Citigroup
Manufacturing of Japanese National Flags As GDP Tops Forecasts
Photographer: Noriko Hayashi/Bloomberg
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Japan’s stock market has regained $334 billion in value this year after crawling out of the worst quarterly performance since 2008. But the bounce isn’t enough to get everyone back.

A gauge of fund manager demand for Japanese equities slid this month to the lowest since November 2016, Bank of America Merrill Lynch said in a April 17 report, citing concerns about the outlook for earnings. The Topix index’s 8.3 percent rebound this year lags the performances of other developed markets.