Varley: Japan growth will continue to rely on external factors

Royal London's David Varley says growth in Japan will be largely driven by external factors, notably China's economy, for some time to come.

  The manager of the £279m Japan Growth fund says there are unlikely to be any growth catalysts coming from within the country. “The performance of Japanese markets will be driven by events external to Japan,” he says. “People should buy Japan who believe the story of global growth led by China. In this scenario, exporters will do well, potentially better than other exporting countries, because they are cheaply valued and undertook strict cost-cutting during the credit crunch.  “There is unlikely to be any internal political change acting as a catalyst because, with one exceptio...