LONDON – Sentiment among domestic investors is picking up but global players remain cautious about the prospect of Japan’s economy rebounding, according to a recent Bank of America Merrill Lynch Fund Manager Survey.
The poll, conducted from Nov. 2 to 8 and released Tuesday, showed that a net 18 percent of Japanese investors expect the economy to start recovering over the coming year, compared with a net 30 percent who projected a deterioration in October’s survey.
But the survey also found a net 34 percent of global asset players are so underweight on Japanese equities that it termed it a “historically bearish” position, although the rate fell from a net 38 percent the month before.
A total of 248 panelists managing $695 billion (about ¥55 trillion) worth of assets participated in the November poll.
“Clearly, sentiment toward Japan remains at rock bottom. We see Japan right now as a contrarian buy. Given the uplift in global growth expectations, that is a little surprising,” said John Bilton, European investment strategist at BofA Merrill Lynch Global Research.