Abenomics’ “three arrows”, which includes monetary easing from the Bank of Japan, fiscal stimulus through government spending and structural reforms, made “very important and fundamental changes to the market”, says Tan. “We are only starting to see the benefits of that now.”
Japan is worth another look from investors, thanks to structural shifts like wage negotiations and the effects of Abenomics coming through after nearly a decade. Speaking at a panel on March 14, chief investment officers from Bank of Singapore and Morgan Stanley Private Wealth Management Asia think Japanese equities and the yen hold promise of returns.
Japan is “extremely interesting” with “reasonable” valuation, says Tan Wee-Kiat, co-chief investment officer and head of discretionary portfolio management at Morgan Stanley Private Wealth Management Asia. “I think India does look a bit more expensive, but there are real positive fundamental differences between the Japan we know today versus Japan that we knew five to 10 years ago.”
