Aviva Investors' Wakefield: Is Japan's stock-market sugar rush sustainable?

New regulations to 'improve competitiveness'

Despite previous unsuccessful attempts, the Japanese government’s structural reforms now seem to be bearing fruit. This has contributed to a 34-year high on the Japanese stock market, but is it sustainable?

Until recently, both domestic and international investors have not had much incentive to invest in Japanese equities. Yet the country's economy and stock market have been shocked into better shape over the last two years, and Japanese equities are now at their highest level in 34 years. Japan managers help maintain number of consistently top quartile performing funds Two key factors have reawakened the sleeping giant that was Japan's economy: the move from a deflationary to an inflationary environment, and a swathe of crucial governance reforms. The results are clear to see, wit...