It's been a good two months for Japan's Nikkei 225. The index has climbed 15% over the past seven weeks, partly down to investor hopes that the world's third-largest economy might be able to ride out the worst effects of the global credit crisis. And with the market still two-thirds below the peak it hit in the late 1980s, there's a long way to go, says Simon Somerville, manager of the Jupiter Japan Income Fund.
"The Japanese market is cheap. Something like 50% of companies are trading below their book value" says Somerville in The Independent. Investing in stocks with a largely domestic focus, the Durham University economics graduate avoids the 10% or so of Japanese companies dependent on the global economy because they are more vulnerable to weakening consumer demand in the West. For example, Sony's share price has fallen 23% so far this year, he tells the FT.
Subscribe to 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
Jupiter Japan Income Fund top ten holdings
-
Britain’s retirement happiness hotspots: where are the best places to retire?We look at the top areas for retirement wellbeing, taking into account housing, health, community, nature and access to amenities. Is your town on the list?
-
Can I inherit my partner's ISA? – little known tax break can boost your allowance by thousandsInheriting a partner’s ISA is fairly simple and comes with special advantages if you’re married or in a civil partnership – knowing what to do with it, however, isn’t always as straightforward
