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Japan

New opportunity in a new century

Why invest in Japan?

After more than a decade of economic uncertainty, Japan has begun to re-emerge as a viable and exciting long-term investment opportunity.

The government has managed to put a brake on deflation. Companies are adopting western-style management. What’s more, years of investment in research and development have put Japan back at the forefront of the technology sector.

Japanese consumers are also beginning to spend again, boosting domestic economic growth and helping Japanese companies grow their profits. Meanwhile, Japanese companies are also among the main beneficiaries of escalating Chinese demand.

All this being said, Japan is still a challenging market. Therefore, it’s vital to have professional stock-choosing expertise to hand – to be able to identify stocks that are most likely to benefit from Japan's rediscovered confidence.

Key Japanese issues to consider

  • World leader in sectors such as automotive and technology, which continue to enjoy strong export demand.
  • Major beneficiary of enormous growth in China.
  • Japan tends to have a low correlation with US and European stock markets, and so offers a valuable form of diversification.
  • Exchange rate changes may cause the value of underlying overseas investments to go down as well as up.

Why J.P. Morgan in Japan?

  • We are one of the largest and longest established asset managers in Japan, with over 35 years of experience on the ground.
  • Our investment process has been specifically developed to exploit inefficiencies in the Japanese stock market.
  • We conduct wide ranging local research to ascertain investment opportunities – typically including over 2,000 company visits a year.