Why investors cannot ignore 'evolving' relationship between Japan and Asia

clock • 5 min read

Kenichi Amaki, portfolio manager at Matthews Asia, argues investors focusing on Abenomics and GDP growth are missing the 'bigger picture' of Japan capitalising on demand from within Asia.

International investors have powered the Japanese equity market rally since Prime Minister Shinzo Abe unveiled his monetary, economic and reform policies to drag the economy out of deflation. Japan's missed targets: A severe misdiagnosis? Japan's domestic economy, on the one hand, remains sluggish due to slow export growth, and consumption remains weak despite rising wages and falling energy prices. On the other hand, Japanese companies are seemingly flourishing. Corporate earnings continue to be robust, supported by an improved pricing environment, weak currency and lower fuel pri...

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

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
What happened to China in 2023?

What happened to China in 2023?

Nine experts debate

Investment Week
clock 16 January 2024 • 5 min read
Trustpilot