Japan’s solid tech profile, mature industries and huge export power have gone hand-in-glove with overall economic stagnation over the past 30 years. But the recovery of the Nikkei and Topix indices to levels not seen since the early 1990s inevitably leads to questions about whether investors have to take the country seriously again as an investment destination.
This debate assumes an even greater importance as Japan seems like a benign alternative to an increasingly sclerotic Chinese market. Recent reporting suggests that even quite small Chinese start-up companies are feeling the dead hand of state interference as its leadership cleaves awkwardly towards a suspicion of private industry.
In this context, the question is whether or not Japan-focused investors can look to 2024 with confidence after such a long run of positive share price growth.