What is Abenomics and is it Working?

Boosted by the weak yen tourism is up 60% in a year in Japan, good news for the economy and equities. Emma Wall visits Tokyo and discovers whether Abenomics is really working

Emma Wall 8 April, 2015 | 12:02AM
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The Japanese stock market is rallying – and there are still good gains to be made.  Thanks to the bold economic policies of Japanese Prime Minister Shinzo Abe, private companies – and their shareholders – can expect to reap the rewards of boosted revenues.

Wary investors may feel like they’ve been here before when it comes to Japan. The stock market has shown promise in the past – only for any gains to be wiped out months later. The troubled economy has held the equity market back.

Prolonged periods of deflation and a rampant currency for the past 20 years has knocked consumer confidence and made the country unattractive to foreign investors. On top of this, Japan is struggling with demographics of a rapidly aging population – which means fewer people paying income tax and a rising number of people burdening the state.

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About Author

Emma Wall  is former Senior International Editor for Morningstar