Japan in line for a long term economic recovery
Despite the recession figures announced on Monday we believe that prime minister Abe and the Bank of Japan are committed to ensuring economic recovery continues and they guide Japan back to a growth path. The strong lower house election results mean that the government has been endorsed to continue with the current policies.
Mid to longer term prospects for the Japanese equity market remain attractive. While our sector decisions are derived from our bottom up stock selection, we expect that we will continue to be overweight in companies which benefit from the longer term recovery of the domestic part of the economy.
Miyuki Kashima is head of Japanese Equity Investment at BNY Mellon