The rally that lifted the Nikkei Stock Average past 30,000 for the first time since 2021 on Wednesday has been fueled by foreign investors seeking a stable safe haven in an uncertain economic environment.
American stock investors are grappling with the question of where to put their money. The Federal Reserve’s continued monetary tightening has heightened the risk of a credit crunch, and the odds of a “soft landing” — controlling inflation without triggering a recession — are looking worse.
Those looking outside the U.S. have taken note of the Japanese market’s surprising strength. The broad Topix index is up 13% this year to a 33-year high, outpacing the S&P 500’s 7% gain and the 9% rise in Europe’s regional Stoxx 600.
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.
