The tax reforms to lift Japan's fog of deflation

ON JAPAN

Japan is in the midst of climbing Mount Fuji under the dense fog of deflation, but the government has put in place a raft of tax reforms to help boost spending, explains SuMi Trust's Masashi Oda.

Investors could take a pessimistic view on Japan as a country with an ageing population.  While it is true that the average life expectancy in Japan is over 80 years, it does not mean that consumption is shrinking. Baby boomers are now reaching a retirement age of 65 and are starting to enjoy life with generous pensions and savings.  Many retired people are spending on luxuries like holidays on the  Seven Stars railway, a luxurious train recreating the glamour of the  Orient Express. Indeed, tickets for the Seven Stars went on sale last month from Japan Railway priced at between ¥400,...