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

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...