Japan remains attractive for active investors as digitalisation gathers momentum

Pandemic boosted themes like automation

Japan is positioning itself as the land of rising investment opportunities, especially in themes such as automation and information technologies, according to Eiji Saito, manager of the JPMorgan Japan Small Cap Growth & Income Trust.

Saito said investors are still being weighed down by worries that a resurgence of Covid-19 infections would lead to an extension of restrictions and slow the economic recovery. However, he pointed out the pandemic has actually accelerated some themes that could be long-term resilient sources of return for Japanese companies - particularly in sectors such as automation and information technology. "Office digitalisation is a prime example of this. In many Japanese offices, IT systems are old, and paper-based office work is still common. One of the several names we like on the office dig...