Why is Japan's stock market considered highly investible now?

Japanese companies have improved corporate governance, embraced shareholders, and increased dividends. The economy is also experiencing growth with rising wages and inflation.

What are some top companies within the JPMorgan Japanese fund?

The fund holds global brands like Asics, Nintendo, and Uniqlo, along with defense-focused IHI Corporation and financial institutions like Mitsubishi UFJ.

What are the investment risks in the Japanese market?

While recent performance is strong, the fund previously underperformed in 2021-2022 due to a focus on growth stocks during high inflation periods.

Home / Business and Economy / Japan Investment Boom: 22-Year High Attracts Global Funds

Japan Investment Boom: 22-Year High Attracts Global Funds

18 Jan

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Summary

Japanese companies now prioritize shareholder value and dividends.
Economic growth, rising wages, and increasing inflation fuel Japan's economy.
Fund manager Nicholas Weindling notes Japan's market is the most investible in 22 years.

Japan Investment Boom: 22-Year High Attracts Global Funds

Japan's investment landscape is currently highly appealing, with market conditions considered the most favorable in 22 years by Nicholas Weindling, manager of the JPMorgan Japanese fund. Weindling highlights a significant transformation in corporate governance, with Japanese firms now actively engaging shareholders and distributing dividends. The economy is showing robust signs of growth, supported by increasing wages and a noticeable uptick in inflation. These positive economic indicators, combined with attractive company valuations compared to international markets like the US, position Japan as a prime investment destination.

The fund, which has returned 35% over the past year, invests in around 60 stocks, including globally recognized brands such as Asics, Nintendo, and Uniqlo. Weindling points to Asics' growing market share against rivals like Adidas and Nike, Nintendo's ownership of powerful intellectual property, and Uniqlo's international expansion as examples of strong performance. The fund also strategically invests in sectors like defense, with IHI Corporation focusing on aircraft engines and missile systems, and financial services benefiting from rising interest rates.