Market sentiment changed completely in the second half, triggered by Koizumi's re-election.
Steel and metal companies are on a long-term rising trend. Demand will continue to increase.
Better prospects for Japan's economy were at the heart of the surge in the second half. Consumer spending is increasing and the labor market underwent great change with companies expanding their hiring. It was a year for domestic-demand stocks.
Recent gains suggest to me that shares are rising too fast and it's natural to expect selling.
Earnings are now the focus as results will be an indication of companies' future profitability. Banks will benefit from increasing capital spending and their stocks are still cheap.
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