Quietly Japan (EWJ, quote) has regained a lot of its lost ground after 20% correction May into June. The NIKKEI is +16% since June 13th and the call here was to buy weakness.
It is important to reiterate what I said on CNBC Asia on June 10th, pullbacks in Japan are to be bought with growth that has recovered, and clear inflation being brought to the table by Bank of Japan (BOJ).
BOJ is listening to the markets, like the Fed, and will be very wary of disappointing the circular trend they have supported between policy supporting markets which in turn support policy.
Autos and banks are the best plays with exporters continuing to get a boost from the weakening Yen, and financials benefiting from a steepening yield curve, and increased volatility in markets.
