Why Japan will benefit from 'Abenomics' over the long term

JAPAN

Despite the worrying market correction recently, Shinzo Abe's growth strategies for Japan are still providing essential support to long-term equity investors say the Japanese equity team at Schroders.

Prime Minister Shinzo Abe has been whetting investors’ appetite for Japan and his economic policies, dubbed ‘Abenomics’, are starting to have some impact on the Japanese equity market, which has expanded at an astonishing rate, returning 50.8% from 30 November 2012 to 30 April 2013. The recent set back which the market has experienced since late May seems to be a reasonable correction after such a long winning streak. Admittedly the size of some daily moves, coupled with high intra-day volatility, appears slightly disturbing, but some of this has been generated by moves in bond and curre...