^{Monday 22nd March 2010}

After years of underperformance in equity markets, Japanese fund managers have now announced a brighter outlook for the future, even suggesting that investors increase their exposure in Japan funds.

At the moment Japanese funds would appear to be a bargain as they are trading at an average of 1.2 times their book value, showing a discount compared to the global market.

Japan is now the largest exporter of goods to China which is also set to boost Japanese exporters earnings as China grows more prosperous. If the yen was to weaken further, this will give exporters extra confidence. This would see income investors turning towards Japan hunting for dividends as companies profits are expected to improve.

However, analysts argue that share process reflect too much confidence in improving company earnings, they say that the strong yen in the way of companies improving profitability. Others believe that now is the time to gain exposure in Japan.

If you would like more information about potential investment opportunties in Japan or the rest of Asia, please contact us.

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