What has happened in the rst half of the year in your area?

Japan’s market began the year strongly. The Nikkei jumped 3.3% on its opening day, its best start since 1996. However, investors’ early optimism was short lived. The market peaked on 23 January before dropping sharply. Equities continued to drift lower in March, with a combination of geo- political uncertainty and worries over full-year forecasts causing nervousness among investors. Markets recovered in May but drifted lower again in June, closely mirroring geopolitical issues as they initially subsided and subsequently worsened.

Company earnings were incredibly strong in 2017, and we feel optimistic about 2018. However, earnings growth may slow year-on-year and 2018 is unlikely to reach levels seen last year. In addition, worries about the impact of a trade war might impinge on growth. However, solid growth remains very likely.