Japan's 'patchy' economic progress offers little to active investors

Corinna Arnold, managing director at RWC, says despite Shinzo Abe's numerous attempts to kick-start Japan's ailing economy in 2014, progress is likely to be patchy at best

Abenomics has become less of a driving force in the Japanese equity market of late, and the absence of much expansion in P/E multiples is perhaps indicative of increased investor caution. There has been disillusionment at the lack of progress in the most politically difficult reforms (labour market, agriculture), but a surprisingly positive response to the real progress in corporate governance and stewardship. This is becoming a regular theme in the market, being mainly but not solely manifested in enthusiasm for the JPX400 and speculation as to the likely beneficiaries of Government Pen...