Japan’s Value Stocks Drive Topix’s Resilience as Nikkei Slumps
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Japan’s main equity indexes are witnessing divergent fortunes, with a bet on value stocks and corporate governance reforms supporting the Topix gauge.
The Topix dropped 4.5% in the three months to end-March, outperforming the Nikkei 225 Stock Average which slumped more than 10% to cap its worst quarter in five years. Gains in value shares such as Mitsubishi UFJ Financial Group Inc., Mizuho Financial Group Inc. and Sompo Holdings Inc. helped to temper the benchmark index’s losses.