2014 has not been kind to Japan bulls. After rocketing by almost 60% in 2013, the Nikkei has slid by over 10% this year. The yen has strengthened amid global market jitters, threatening to undermine the earnings of Japan’s major exporters, who dominate the stock markets.
Investors also appear to have lost some confidence in ‘Abenomics’, the authorities’ attempts to end deflation with money printing and boost growth via structural reforms.
In particular, some worry that a recent rise in Japan’s consumption tax (VAT), designed to trim Japan’s huge budget deficit of more than 7% of GDP, could choke the [...]
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