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By Kwok Chern-Yeh, Head of Investment Management, Japan, Equities – Asia, Aberdeen
Japanese stocks are roaring ahead. The Topix, which tracks 1,882 companies, is trading around levels not seen since 2007. Share prices have been boosted by stimulus policies as Prime Minister Shinzo Abe administers shock treatment to an economy that had suffered years of stagnation and falling prices. However, while the Bank of Japan's monetary easing and other measures are likely to provide short term support for asset prices, there are few signs of the benefits trickling down to the wider economy.
Cheaper oil may help improve the state of public finances and boost the spending power of shoppers, but the impact from earlier rounds of financial stimulus has been limited...
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