Japanese equity at turning point: Schroders

Japanese equity is at a turning point, as the country emerges from the difficult period of the 2011 earthquake and the Fukushima disaster it triggered, Schroders believes.

Poor demographics, deflationary pressure and faster growth rates among emerging Asian neighbours have marginalised Japan in the eyes of many investors. However Schroders believes that this has left equity undervalued.

A statement by the asset management company said: “Dramatic changes in ownership of the equity market to more active shareholders has put pressure on companies to deliver leading to higher profitability and more attractive investment opportunities.”

Schroders went on to highlight the potential offered by Japan’s booming neighbours, and to point out that although one of the broadest in the world, the Japanese equity market is relatively under-researched. They believe that this makes it an ideal hunting ground for alpha.

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