A setback for Abenomics

Japanese stocks fell on Wednesday as traders registered their disappointment with the reforms from prime minister Shinzo Abe. This is the "third arrow" of three in the economic strategy known as Abenomics'. The package of reforms follows on from earlier moves to weaken the yen via quantitative easing (QE), and to help boost the Japanese economy through higher government spending. So far, Abenomics' has helped lift Japan's benchmark Nikkei 225 share index by 53%, while pushing the yen lower against the dollar. But the market has slipped back by about 15% in recent weeks.

What the commentators said:

But while it's true that "earlier exuberance was excessive", says Julian Jessop of Capital Economics, there is "an increasing danger that the pendulum may now be swinging too far towards pessimism". The success of Abenomics' is by no means guaranteed, but it "surely represents the right mix of policies to tackle Japan's problems".

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.