How Abenomics is bearing fruit in Japan and how investors can profit

The Japanese stockmarket has underperformed for four years, and was slammed in last autumn’s tech sell-off, which knocked 18% off stocks in sterling terms. While the Topix index is still languishing 40% below its 1991 peak, other major developed markets such as the US have recovered to their all-time highs.

Why Japan offers the best hunting ground for value investors

Well, that wasn’t much fun for investors: 2018 promised so much but ended up delivering very little, if anything at all. Of all major asset classes referenced by UK investors, only property ended up meaningfully in the black – up around 7%. Cash and gilts returned a little over 0.5%. With a 3.1% loss, global developed markets fared better than commodities, emerging market equities and UK shares, which propped up the asset class performance table with near 10% losses.