Why a Japanese debt crisis could be good for stocks

Despite the image of Japan as a country stuck in an endless depression, it is still the world's third-largest economy and its economic performance has been better than many think. But stocks are still in the doldrums. So what will it take to get its stockmarket back on track? Cris Sholto Heaton explains.

It's hard to find much good news coming out of Japan these days. But at least the situation has avoided taking a further turn for the worse. Prime minister Naoto Kan has successfully seen off the first challenge to his leadership, after just three months in charge.

That's a relief. Not because Kan is proving a particularly impressive prime minister, but because his rival Ichiro Ozawa promised to make things even worse for the government. A long-time political heavyweight, he's unpopular with the public and represents what most voters rejected in the elections last year.

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Cris Sholto Heaton

Cris Sholto Heaton is an investment analyst and writer who has been contributing to MoneyWeek since 2006 and was managing editor of the magazine between 2016 and 2018. He is especially interested in international investing, believing many investors still focus too much on their home markets and that it pays to take advantage of all the opportunities the world offers. He often writes about Asian equities, international income and global asset allocation.

Cris began his career in financial services consultancy at PwC and Lane Clark & Peacock, before an abrupt change of direction into oil, gas and energy at Petroleum Economist and Platts and subsequently into investment research and writing. In addition to his articles for MoneyWeek, he also works with a number of asset managers, consultancies and financial information providers.

He holds the Chartered Financial Analyst designation and the Investment Management Certificate, as well as degrees in finance and mathematics. He has also studied acting, film-making and photography, and strongly suspects that an awareness of what makes a compelling story is just as important for understanding markets as any amount of qualifications.