Japan's Tankan survey has recorded a marked improvement in business confidence among large manufacturers.It went up to 4 in June from -8 in March.
According to Nicholas Weindling,a fund manager at JP Morgan Asset Management,this tallies with everything we're hearing from companies in the bottoms up survey we're doing.Hotels went up from 60 to 85 on rising prices per room.There is unprecedented demand for people to work in financial services.
It's all about looking to what Abenomics can achieve medium to long term.There are problems here,but there's a real sense of purpose.Everybody's moving in the same direction at the same time,which is different than before.
We see strong companies that are underappreciated just by virtue that they are located here in Japan.Banks,real estate,retail and services are big bets for us here.
Abenomics is the economic policies of Prime Minister Shinzo Abe.They include monetary and fiscal policies,as well as economic growth strategies,to encourage private investment in Japan.For instance,there is an inflation target of 2%,plus extensive quantitative easing,or bond buying,and limiting of the yen's appreciation,as well as a policy of increasing public investment.
iShares Japan Index Fund(EWJ)