HSBC, SocGen Take Contrarian View of Japan’s Blistering Market

  • Sell signals are flashing as Topix enters overbought territory
  • Yen volatility is surging on speculation over BOJ’s policies
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Japan, Asia’s most-popular market, also has its detractors.

Investor enthusiasm for Japanese equities dominates the region, with 59% of Asia’s fund managers overweight on the country, according to a Bank of America Corp. survey this month with India a distant second at 18%. The optimism is based on the country’s Nikkei 225 and Topix indexes reaching their highest levels in 34 years, coupled with a weak yen and the return of inflation.