Why investors are looking east towards Japan

190111-bird.jpg

Accentuate the positive Exciting things are happening in Japan, and they should be of interest to anyone looking for investment opportunities in 2019. Over the last 15 years, returns from the Japanese equity market, reported in sterling and including dividend income, have actually been very close to those from the UK. Since the end of 2002, the FTSE All-Share Index has generated compound annual returns of 8.6%, compared with the TOPIX Index of 8.0% and the narrower Nikkei 225 Index of larger companies of 9.7%. What's more, there's potential for further progress.

This may all come as a surprise, as the overwhelming perception of Japan in recent years has been one of decline. After all, for the past 25 years corporate Japan has suffered from a powerfully negative set of headwinds.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up