Exporter-Heavy Indexes: Topix Members and Quarter Correlation

exporter-heavy indexes: Suddenly the link is loosening as the economy shows signs of stability and corporate earnings rise. ; Even with the yen trading near a four-month high, the benchmark Topix has risen more than 6 percent since the start of the second quarter, according to The Japan Times. Correlation between the two assets has fallen to minus 0.18, the lowest level since 2012, based on their weekly changes. It's the yen, whose level against the dollar has generally been all you needed to know to tell where exporter-heavy indexes like the Nikkei 225 average were trading. Companies are doing well in Japan, Nicholas Weindling, a Tokyo-based money manager at JPMorgan Asset Management said by phone. Topix members beat analyst profit estimates by an average of about 16 percent in the latest quarter. Net profits are growing at over 20 percent so even without the follow-in of a weakening yen, companies are doing well and ultimately everything should come back to company fundamentals in the long-term. (news.financializer.com). As reported in the news.