There are two other factors, aside from wage growth, that could support growth in Japan, says Michael Stanes, investment director at Heartwood Investment Management
Japan is presenting a paradox: the stock market continues to rise at the same time as growth disappoints. Real GDP in the fourth quarter of 2014 fell short of consensus expectations at 1.5% quarter-on-quarter (annualised), after a contraction in growth in the second and third quarters. This apparent disconnect signals investors believe Japan is turning the corner, but are they setting themselves up for another dose of disappointment? The clinching factor as to whether Abenomics and the Bank of Japan's reflation policies succeed will be rising income levels. Japanese consumers need to ...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes