Whitley: Japan is turning around false perceptions

Sentiment towards out-of-favour Japan is beginning to turn, with the market rising 11% since October, said Sarah Whitley, manager of the £168m Baillie Gifford Japan trust.

Whitley said investors’ perception of Japan does not match reality. Many Japanese companies reported strong profit growth in the first half of their fiscal year and earnings have been revised higher, in spite of the strength of the yen. “The market has cheered up since November and Japan has moved more in line with other markets. In year-to-date figures, it is not too far off other developed markets,” she said. “If the world continues to grow and the yen does not appreciate further, there should be good profit growth for Japanese companies this year and in 2012.” The trust is curre...