Asia

Schroders is preparing to add a sterling-hedged share class to its £797m Tokyo fund as investors become more concerned about downside risk to the yen.

Aberdeen Asset Management's multi-manager team is to seed specialist Asian equity house Coupland Cardiff's Japan Income & Growth fund when it launches tomorrow.

Legg Mason plans to unveil a sterling-hedged share class for its top-performing Japan Equity fund to protect investors from currency volatility, as the Bank of Japan (BoJ) unveils a fresh stimulus package.

Japanese markets have jumped almost 5% in the first three weeks of the year - almost unheard of for the region - in anticipation of a reversal of the decade and half long slump into deflation.

Economist and renowned commentator on Japan, Arcus Investment's Peter Tasker, said in the last 20 years the country has been through the most severe and prolonged bear market ever seen.

China's economic growth picked up in the fourth quarter of 2012, but data for the year as a whole showed the country recorded its slowest growth for 13 years.

ON JAPAN

The Japanese government has approved a fresh 10.3 trillion yen ($116bn; £72bn) stimulus package to shore up its flagging economy.

A convincing election win by Shinzo Abe and his Liberal Democratic Party(LDP) boosted Japanese equities and caused the yen to weaken.

Asian equity boutique Coupland Cardiff is set to add a Japanese income fund to its range in the New Year.