Expect robust returns in the Year of the Rabbit

ON JAPAN

Martin Currie's John Millar reveals the three factors that will provide investors in Japan with considerable bang for their buck.

As Japan enters its Year of the Rabbit, investors in the country’s stockmarket can reflect on a successful Year of the Tiger. In sterling terms, MSCI Japan rose 19% in 2010, outperforming the MSCI World index comfortably. After this tigerish performance last year, should investors expect the Year of the Rabbit to produce more timid returns? We do not think so. Most of the trends that helped the Japanese market last year are still in place and many are still to take full effect. These factors should help Japan produce further robust returns in 2011. First – and most importantly – the J...