Investing in Japanese stocks: Outlook & Opportunities by Nicholas Price Fidelity

Economic renaissance, governance reforms and steadily growing profits have lifted the Nikkei 225 to new highs, yet we believe valuations remain undemanding and the market is under owned. Nicholas Price, Portfolio Manager of Fidelity Japan Trust PLC (LON:FJV), explains why the outlook for Japanese equities remains positive, with many investors still underexposed to the market.

There’s a major shift underway in Japan. After 34 years, the country’s stock market has climbed past its previous record high, making history as it does so. This reflects signs of a blossoming in the economy as deflation appears defeated and companies embrace the interests of shareholders.

Following a powerful rally in the first few weeks of 2024, the Nikkei 225, a key market index, has climbed back to the levels last reached in 1989 before the country’s asset price bubble burst. There’s real optimism that the ingredients are in place for stocks to continue to rise.

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