NEW YORK (Reuters) - The revival of Japanese banks makes some of these stocks worth consideration by U.S. investors as the banks wield cash that many American and European counterparts lack, according to Barron's.
It pointed to Mitsubishi UFJ Financial <8306.T> paying $9 billion for 21 percent of Morgan Stanley
Other deals included Mizuho Financial <8411.T> and Sumitomo Mitsui Financial <8316.T> with western banks and investment companies, marking a "new dawn" according to Barron's.
"This should hearten investors in the U.S. and European financials," Barron's said. "After all, if the Japanese could turn around their banking sector, why can't others do the same?"
The Japanese investment bubble burst in 1989, devastating the banking system. Two big institutions failed in 1997.
Barron's said Japan's revival needs to gain traction before "the real golden age" will arrive for the banks.
Japanese banks are expected to miss their earnings forecasts for the year ending in March and valuations of European and U.S. banks have plunged, making Japanese shares less cheap, the paper said.
"Still, these transactions make Japanese bank returns look more promising for the first time in a long while," Barron's said.
(Reporting by Grant McCool; Editing by Bernard Orr)
