Goldman Says US Buyers Return to Japan Stocks as War Shock Fades

US investors are returning to Japanese stocks as confidence recovers from the initial shock of the Middle East crisis, according to Goldman Sachs Japan Co.’s chief Japan equity strategist.

The shift, driven partly by a stabilizing yen, has spurred US capital inflows into the tech-heavy Nikkei 225 Stock Average, as reflected in its divergence from the Topix, said Bruce Kirk. With Japanese policymakers unlikely to tolerate a significant yen decline past current levels near 160 per dollar, unhedged US-based investors may be more willing to buy Japanese stocks, he added.