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.