AMP Capital Investors Ltd. is an arm of Australia's largest asset manager. The company resumed acquisition of Japanese shares with expectations that the Prime Minister would win upper house elections. Japan's Prime Minister Shinzo Abe seeks to push through economic reforms for the country through weakening its currency.

Nader Naeimi, Sydney based head of dynamic asset allocation at AMP Capital said that stocks would rally as much as 20%. He added that the yen will fall to the dollar by the end of this year. AMP Capital manages more than US$130 billion assets. Naeimi also predicted the magnitude of the recent correction in Japanese stocks correctly. AMP Capital resumed purchase of Japan's stocks last month. Lastly he added that those in the retail, real estate and financial industries along with exporters will benefit the most.

The Topix index fell by 18% from an almost five year high last May 22. It closed yesterday by 8% lower than the peak. Even with the decrease, Japan still outperformed major equity markets this year. This was because of Abe's "three arrows" campaign on economic reforms.