Japanese markets have hit the headlines this year, reaching heights not seen since the 1990s. This has led to interest and excitement in Japanese companies being reignited, and begs the question, is this time round really different?
Unlike many other countries around the world, Japan’s GDP, or gross domestic product, is beating expectations. The economy grew 2.7% in the first quarter of this year, beating earlier forecasts of 1.6%. To put this into context, the US and UK’s GDP fell short of expectations, growing 1.1% and 0.2%, respectively.
A large driver has been the surge in foreign visitors. Following the removal of all pandemic measures, tourists have flocked back to Japan, which has boosted consumer spending. Some businesses have rebounded quickly as a result.
Fidelity Japan Trust PLC (LON:FJV) aims to be the key investment of choice for those seeking Japanese companies exposure. The Trust has a ‘growth at reasonable price’ (GARP) investment style and approach – which involves identifying companies whose growth prospects are being under-appreciated or are not fully recognised by other investors.
