Towering above Covid: Manufacturing sector remains a pillar of strength for Japan's economy

Deep Dive into Japanese equities

Until around mid-March Japanese equities were one of the best performers in 2021, but the sector has since been underperforming other markets.

One of the reasons for the downturn has been the movement in the yen. The yen initially weakened from 103 against the greenback at the start of the year to a peak of 110.7 in March, before moving in the opposite direction.  Then in April, Japan was hit with a fresh wave of Covid-19 infections, forcing the government to impose a third state of emergency in several prefectures to stem the spread. Nikko AM Japan Value fund's Aoyagi eyes Nikkei's 'growth transition' At the time of writing, nine prefectures are currently still in lockdown, with reports suggesting that these measures cou...