Japan in Recession: Should Investors be Worried?

Japan has entered it seventh recession in 20 years. Many are saying this is a sign Abenomics has failed. But how concerned should investors in Japanese equities be?

Emma Wall 25 November, 2015 | 6:19AM

This article is part of Morningstar’s Guide to Investing in Asia where we navigate the potential risks for the chance of fantastic rewards from across the region.

Japan’s economy has shrunk for the second quarter in a row, meaning the country is officially in recession. The economy shrunk by 0.2% in the three months to the end of September, following a decline of 0.2% in the three months to the end of June.

Although the recession was expected, following a drop in corporate expenditure, it is disappointing, and will probably signal more stimulus from the Bank of Japan.

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About Author

Emma Wall  is former Senior International Editor for Morningstar

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