3 Reasons to Invest in Japan

The Nikkei may have rallied 50% over the past two years, but the ongoing positive impact of Abenomics mean it is not too late to benefit from investment growth in Japan

Emma Wall 9 April, 2015 | 7:45AM
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Would you travel more than 1,000 miles just to buy a packet of nappies? Thanks to a favourable exchange rate, a growing disposable income and a certain designer cache to the Kao brand, the new Chinese middle class is doing just that.

Such is demand for these disposable diapers that retailers in Tokyo are restricting shoppers to just two packets of Merries per trip. It is not just nappies that tourists cross the East China Sea to snap up. Certain Japanese goods are synonymous with the best possible quality and as well as designer nappies – which Chinese mothers send their babies to nursery in, keeping domestic brands for wearing at home – tourists are buying multiple knives, toilet seats and thermoses.

“Tourism in February was up 58% on the year before, boosted by the Chinese holiday season,” said Simon Somerville manager of the Silver Rated Jupiter Japan Income fund.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
FUJIFILM Holdings Corp9,020.00 JPY0.00
Jupiter Japan Income L Acc155.00 GBP-0.73Rating
Liontrust Global Alpha A Acc GBP9.85 GBP-0.01Rating
Liontrust Japan Opportunities A Acc GBP  
Mitsubishi Estate Co Ltd1,593.50 JPY0.00Rating
Pan Pacific International Holdings Corp1,993.00 JPY0.00
Panasonic Corp1,273.00 JPY0.00Rating
Seven & i Holdings Co Ltd4,626.00 JPY0.00Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar