This Sunday's election is likely to see a decisive victory for Japan's Democratic Party of Japan (DPJ), ending 54 years of rule by the Liberal Democratic Party.
This "can only be a potential positive" for investors, as Christopher Wood of CLSA puts it.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
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
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
But while hopes for political change are often dashed, the reasons why Japanese stocks look appealing over the long term have nothing to do with politics. Unlike its Western counterparts, Japan's economy has already been through a credit bubble collapse.
Meanwhile, the Topix remains the cheapest major market on 1.2 times book value, compared to pan-Europe's 1.5 and the S&P 500's 2.1.
-
8 of the best smallholdings for sale nowThe best smallholdings for sale – from a medieval cross-passage farmhouse in Taunton, Somerset, to a former farmhouse with an orchard in the Welsh Marches
-
How much gold does China have – and how to cash inChina's gold reserves are vastly understated, says Dominic Frisby. So hold gold, overbought or not
