$MS Reverses Bullish Position, Calls for Japan’s Topix to Fall 10%

“Morgan Stanley, previously the most bullish brokerage on Japanese stocks, says the Topix Index (TPX) will fall about 10 percent as investors await corporate earnings and progress on promised economic reforms.

Japan’s broadest equity measure may fall to 1,020 “in the near term,” according to Morgan Stanley which in March had a year-end estimate for the Topix of 1,270, the highest among brokerages and asset managers surveyed by Bloomberg News. The company isn’t changing its outlook even as others including Nomura Holdings Inc. (8604) and Goldman Sachs Group Inc. (GS) raise their forecasts, Jonathan Garner, Hong Kong-based chief strategist for Asia andemerging markets, said by phone….”

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