Although 2020 is some time off the government should use this accolade that Japan is very much committed not only to rejuvenating economic activity but also to increasing its role in the global economy. With the eyes of the world watching there will be added pressure on the government to deliver much vaunted reforms.
As for individual stock prices many Olympic-themed names have performed extremely well over the summer months while there has generally been a lack of impetus from elsewhere. Going into the final quarter of the year we should get greater clarity on issues such as the consumption tax over which there has been some concern about implementation. Once such issues have been cleared up the market should be able to progress and refocus once more on the hard facts of companies witnessing an improvement in business conditions.
Henderson Japan Capital Growth Fund & Henderson Horizon Japanese Equity Fund
These are fund manager views at the time of writing and may differ from those of other Henderson fund managers. The information should not be construed as investment advice. Before entering into an investment agreement please consult a professional investment adviser.