Earnings growth may also slow for technology companies in the region.
The emphasis isn't on companies' outlook for future growth. Rather, investors are picking stocks with low (price-to-earnings) ratios, or companies that averaged safe revenue growth over the last five years.
There is a growing view that insurers have had their run for the short term. Money is shifting to the laggards of the markets now, such as the technology companies.
Japan's economy demonstrates quite a healthy picture,
A possible slowdown in the U.S. economy is clear. Demand for overseas goods cannot be sustained at the current level.
Investors are awaiting the outcome of the central bank's policy-setting meeting tomorrow. Caution before the Bank of Japan verdict appeared to keep market participants at bay.
The crude oil price is the U.S. economy's Achilles' heel as higher costs for gas and engine oil directly affect consumers. A possible rise in borrowing costs in Japan may curb demand for loans and is a blow to bank stocks.
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