The worst Japanese earnings season in two years is spurring top fund managers to scoop up shares of drugmakers, car companies and telephone operators.
Aberdeen Asset Management PLC's Kwok Chern Yeh boosted holdings of Chugai Pharmaceutical Co. on speculation prices fell too far, too fast. Yuzo Hashimoto of State Street Corp. said he favors auto stocks as the industry's supply chain recovers. Polar Capital Holdings PLC's James Salter bought a new stake in NTT Corp., which said this month it will buy back shares.
"Companies have been quite conservative and it seems to imply that there's quite a challenge ahead," said Kwok, the Tokyo-based head of Japan equities at Aberdeen, which oversees $290.4 billion. "A lot of stocks look quite attractive at these valuations, but they've looked cheap for a long time. Now it's a real stock picker's game. It takes a bit of sifting through."