Strong yen and unstable politics are hindering Japan's progress

ON JAPAN

Polar Capital's Gerard Cawley explains why Japanese equities are likely to remain cheap.

Travelling around Tokyo six months after the earthquake, there is little evidence of the destruction suffered by residents further up the North East coast line. Energy conservation measures mean, with air conditioning at a premium, the ubiquitous Japanese salaryman has lost his jacket and tie in favour of a polo shirt. Passing the Japanese parliament, with a new Prime Minister in office, the sixth in five years, again little evidence of crisis with politics functioning, or not, as usual. In Ginza shopping district, well-heeled Mrs. Watanabe has returned to her favourite department stores...