Twelve-month returns for the MSCI Japan are near 14% in U.S. dollar terms. We don’t see the recent slide in the yen to 34-year lows versus the dollar derailing this momentum. Why not? Japan’s growth outlook remains positive, corporate reforms are taking hold and rising wages can support consumer spending. Ultimately, yen weakness is mainly due to the gap between Bank of Japan and Fed policy rates. The yen could recover once the Fed cuts. We stay overweight Japan’s stocks. {chart} At the end of April, the yen tumbled to near 160 to the dollar – its lowest in 34 years. The Japanese authorities appear to have intervened ... (full story)