Q&A: Aberdeen's Kwok Chern-Yeh on the strength of Japan's recovery

SPECIAL REPORT: JAPAN

Kwok Chern-Yeh, Aberdeen Asset Management's head of investment management, Japan, explains the group's approach to investing in Japanese equities and why he is buying into the country's recovery story.

How is the Japanese economy showing signs of recovery? Prime Minister Shinzo Abe’s stimulatory policies are having an effect. Inflation in Tokyo was up 0.2% in June*; wage growth has inched into positive territory and workers are seeing higher bonuses. Retail sales and housing starts rose in May amid anecdotal evidence that consumers are spending more ahead of a planned consumption tax in 2014. Most encouragingly, larger companies are reported to be increasing capital spending. while all these signs are good, it is too early to reach a verdict that Japan is on the path to sustained r...