Mobius: Do not panic sell Japan

Investors in Japan should look beyond the short-term impact of the crisis as the country will recover quickly due to its large foreign reserves, says Mark Mobius.

Franklin Templeton's emerging markets expert says although the fiscal stimulus package to kick-start the Japanese economy is set to be significantly larger than that needed after the Kobe disaster, the country has one of the largest foreign reserves in the world, second only to China at almost $1trn. Although Japan has a large fiscal deficit, unlike the US or European countries, Mobius says most of the Japanese debt is also domestically funded. "If there is one thing that I am confident of, it is the ability of the Japanese people to bounce back from this disaster, as evidenced by the...