Japan's stocks have outperformed Europe — but investors are still not seeing its potential, say strategists

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Japan's stocks have outperformed Europe — but investors are not seeing its potential, say strategists

, and declines in Friday trade brought the index below 30,000.

"11% of companies were listed subsidiaries of listed entities and therefore, you need more independent directors in that kind of market," Smith pointed out. "Profits are doing very nicely, this is an attractive market, but it'll be a lot more attractive if they ... get things improved on corporate governance," Smith said.

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