The financials are the lowest-priced part of Japan’s market, as measured by the price-to earnings ratio or price-to-book ratios, and could be a higher beta exposure for those who want to make what is now a contrarian allocation to Japan.
As Abenomics continues to gain traction and Prime Minister Abe makes more progress on his growth strategy for Japan (the “third arrow” of Abenomics), I believe there will be a continual evaluation of the stocks and sectors most primed to benefit from the new government initiatives.
There has been a great deal of excitement surrounding the economic policies of “Abenomics” that aim to end deflation in Japan and restore more positive economic growth. Since the election of prime minister Shinzo Abe at the end of 2012, billions of dollars have flowed into Japanese equities.
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