How Japan Could Benefit From Strong Dollar Environment

Japan needs a weak yen? Maybe not… Thanks to its large export orientation, Japan is likely to benefit in a strong dollar environment, notes Morgan Stanley. Moreover, Pankaj Mantaney and team at Morgan Stanley in their June 15, 2015 research report on “Asia/GEMs Equity Strategy” point out that recent price correction is not enough to warrant an EM upgrade. MSCI EM missed consensus earnings estimates The Morgan Stanley analysts note that historically, since 1Q12, the MSCI EM Index has tended to correct after companies begin to report earnings. However, in the only two quarters that MSCI EM beat consensus earnings…