The Japanese economy is well positioned to benefit from any upturn in the global economy, accordin...
The Japanese economy is well positioned to benefit from any upturn in the global economy, according to Denis Clough, manager of the Schroder Tokyo fund. Clough says long-term structural change in Japan has reduced first-half costs for Topix non-financial companies by 25% compared with 2001, so any recovery in earnings will feed straight through to profits. Furthermore, the equity market looks cheap, with dividend yields rising above bond yields, he notes. Many Japanese companies currently have yields in excess of benchmark 10-year bonds, which has historically preceded a period of ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes