Japan: this time it's different

There has been no shortage of false dawns on a Japanese stock-market recovery in the past. But this time, says Merryn Somerset Webb, you really should heed the call to buy.

Back inDecember I wrote that I expected Shinzo Abe to be elected prime minister of Japan and that when he was, the yen would plummet and the market soar: those of us invested would then lose on the currency, but "make a whole load more on the market".

Abe was duly elected and the yen has fallen 18% on a trade-weighted basis rather less against the pound and the Nikkei 225 index has risen well over 20% (35% if you look back to the middle of November). That's not all the smaller indices have gone nuts with the Mothers index of small caps up 52% and the Jasdaq up 40% this year alone.

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Merryn Somerset Webb

Merryn Somerset Webb started her career in Tokyo at public broadcaster NHK before becoming a Japanese equity broker at what was then Warburgs. She went on to work at SBC and UBS without moving from her desk in Kamiyacho (it was the age of mergers).

After five years in Japan she returned to work in the UK at Paribas. This soon became BNP Paribas. Again, no desk move was required. On leaving the City, Merryn helped The Week magazine with its City pages before becoming the launch editor of MoneyWeek in 2000 and taking on columns first in the Sunday Times and then in 2009 in the Financial Times

Twenty years on, MoneyWeek is the best-selling financial magazine in the UK. Merryn was its Editor in Chief until 2022. She is now a senior columnist at Bloomberg and host of the Merryn Talks Money podcast -  but still writes for Moneyweek monthly. 

Merryn is also is a non executive director of two investment trusts – BlackRock Throgmorton, and the Murray Income Investment Trust.