The growing internationalisation of Japanese companies

Bouncing back from the market correction of last year, the first half of 2019 has been positive for global equities.

However, Japan has languished relative to many other markets, weighed down by trade disputes and specific concerns about China. Investors have also had to grapple with domestic issues that cloud the near-term earnings outlook. These include an expected drop in construction orders after the 2020 Tokyo Olympics, labour shortages as the workforce ages and shrinks, the impact of a 2% consumption tax hike scheduled for October, and the effect of recent yen strength.  Japan appears vulnerable to fragile market sentiment for now, yet there is a robust investment story lying beneath the surfa...