Why investors can’t afford to ignore Japanese stocks

Japan boasts the broadest market outside the US, replete with cash-rich, resilient companies that have battled their way through 30 years of deflation, says Merryn Somerset Webb. And it hasn’t been this cheap in years.

Women in traditional Japanese dress
Cultural traditions mean that people rarely touch each other, which appeared to help fend off Covid-19 early this year
(Image credit: © Alamy)

Earlier this year it looked as though Japan was having a very good pandemic indeed. Cases had been low. Total deaths were under 2,000, in a country with a population double the size of ours. In April Prime Minister Shinzo Abe announced that this is the result of Japanese exceptionalism – the result of doing things in a “characteristically Japanese way”. His deputy went a little further. The success, he said, was about Japan’s mindo (a not very easily translatable term that refers to the quality of a group of people) being tip-top.

Subscribe to 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

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

Sign up
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.