Japan: Ignore Autos and Electronics to Profit

Forget what you think you know about investing in Japan, says JPMorgan's Nicholas Weindling, the companies of the future are not autos or electronics

Emma Wall 15 August, 2017 | 2:55PM
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Japan economy is in rude health but the stocks are for sale

For a long time, investing in Japan was a frustrating experience. Perpetual stagflation and anaemic growth blighted the economy, while the stock market rose and fell with alarming repetition – climbing back no higher in each rally than the position it held in 1993. But thanks to a revolutionary leader, the stars look to be finally aligning for Japan.

At 19,753 today, the Nikkei is some way off the 37,269 peak of 1989, but the outlook for both the stock market and the economy is positive. The government this week revealed that the Japanese economy expanded at an annualised rate of 4% in the second quarter to the end of June. This is the sixth straight quarterly growth figure – the longest growth stretch in a decade for the country – thanks to rising capital spending and private consumption.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
JPMorgan Japan Small Cap G&I Ord501.00 GBX-0.99Rating
JPMorgan Japanese Ord663.00 GBX0.76Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar