The Japanese stocks poised for an Olympic 'bounce'

JAPAN

Shigeru Oshita, chief portfolio manager, SuMi trust for Japanese Equity Growth fund, Standard Life Investments, assesses the stocks that are poised to benefit from the Olympic Games in 2020.

Japanese stock markets reacted positively to news this month that Tokyo is to host the 2020 Olympic and Paralympic Games. The shares of companies perceived to be direct beneficiaries of the games, including construction, infrastructure and media stocks, made particularly strong gains. This Olympics-related ‘bounce’ is expected to prove relatively short-lived. In our view, Olympics exposure alone does not provide a standalone rationale for investing in such stocks. But there are a whole range of positive drivers supporting the case for making medium- to long-term investments in selecte...