How immune to currency woes are Japan's small and mid-cap corporates?

clock • 2 min read

New business opportunities created by structural changes in Japanese society are providing higher growth potential for companies and more options, writes SuMi Trust's Katsunori Kitakura.

Corporate earnings in Japan this year have been affected by the appreciation of the yen, making it difficult to see an increase in market value in the near future. However, the gap between companies experiencing growth in earnings compared to companies experiencing a fall in earnings is widening, and this is increasing opportunities for alpha, generated through good stock selection skills.  In particular, the attractiveness of the mid- and small-cap stockmarket in the 'land of the rising sun' - which are less affected by overseas influences and foreign exchange fluctuations than large...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Asia

EFG's Afzal and Gerlach: A letter from Hong Kong

EFG's Afzal and Gerlach: A letter from Hong Kong

On a recent visit to Hong Kong and Singapore we took the opportunity to meet with market strategists as well as private and public sector economists to better understand the economic problems China is facing given economic sentiment is in the doldrums....

Moz Afzal and Stefan Gerlach
clock 28 March 2024 • 4 min read
Aviva Investors' Wakefield: Is Japan's stock-market sugar rush sustainable?

Aviva Investors' Wakefield: Is Japan's stock-market sugar rush sustainable?

New regulations to 'improve competitiveness'

Baylee Wakefield
clock 14 March 2024 • 4 min read
 abrdn's Yeo and Kwik: Will the dragon soar in 2024 for China?

abrdn's Yeo and Kwik: Will the dragon soar in 2024 for China?

'Cause to be optimistic'

Elizabeth Kwik and Nicholas Yeo
clock 09 February 2024 • 4 min read
Trustpilot