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

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.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

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.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
JPMorgan Japan Smaller Cos Ord532.00 GBX0.00
JPMorgan Japanese Ord690.00 GBX-0.29

About Author

Emma Wall  is former Senior International Editor for Morningstar

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies