The return of value investing in Japan

Despite having the world’s third-largest stock exchange by market capitalisation, Japan is still one of the most neglected, under-appreciated and under-owned markets. In a recent insight, the Japan equity team of Eastspring Investments is making the case for the market and why investors should not ignore Japan any longer.

“Japan is a very liquid, deep, and broad market with over 2000 listed companies. It has outperformed other developed markets in terms of earnings per share growth over the last 10 years,” writes Ivailo Dikov, Head of Japan Equities at Eastspring.

According to the Japan equities expert, the swing towards older economy sectors and value stocks since late 2020 has benefitted the country due to its relatively higher concentration of cyclical stocks. “There are many companies with mispriced but good quality income streams that remain out of favour. The corporate changes are also underappreciated. The upside potential is large for patient investors.”

Read the full Japan insight at Eastspring.com/lu.