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Nomura Overweight On Industrials And Technology Sectors

Analysts at Nomura Holdings, Inc. (ADR) (NYSE:NMR) (TYO:8604) advise Overweight positions in the Industrials and Technology sectors, as they are exposed to an anticipayed pick-up in corporate capital expenditures.

Michael Kurtz and team at Nomura in their “Asia Pacific Strategy Weekly” report dated August 17, 2015, note they prefer North Asian markets over ASEAN.

Nomura Overweight On Japan, Industrials and Technology sectors

Kurtz and team remain “Neutral’ on China, while in Asia-Pacific overall, they are Overweight on Japan. The analysts key overweights remain India and Taiwan.

The following graphs capture the Nomura analysts preferred allocation by country and sector:

While they admit the the China factor does present a non-negligible headwind for Japan’s export- and inbound and tourism-driven sectors, the analysts note Japan’s very strong FY15 Q1 earnings results continue to present a robust backstop, with Russell/Nomura Large cap index recurring profits up 28% y-y.

Focusing on individual stocks in Japan, Kurtz et al. note bank MUFG looks undervalued, considering its high common equity Tier-1 ratio. The analysts reckon...