Morgan Stanley 'looking to double size of Japanese commodities unit'

20 May 2010

Morgan Stanley is seeking to double the size of its Japanese commodities business over the course of the next two years.

This is according to Hisaki Endo, a representative director at Morgan Stanley Capital Group Japan, who told Bloomberg there is "growth potential" in the country's market.

"The commodities sector is lagging behind Europe and America, given the economy's size," he stated.

Japan is currently the top importer of corn in the world, the second-biggest purchaser of copper concentrate and the third-largest buyer of crude oil.

Mr Endo added that there is a growing need for Japanese consumers, producers and processors to use risk management services.

Earlier this year, Morgan Stanley strategist Viktor Hjort advised investors to purchase bonds in Asian banks as a result of the region's growing economy and recently-improved financial sector regulation.

He stated that the financial sector in Asia was going through a period of "de-risking" which was making it "very credit-friendly."

By Gary Cooper

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