The future of Abenomics, the Japanese prime minister's eponymous policies, have been cast into doubt after his resignation on August 28. What does this mean for local assets?
Investors saw the latest round of stimulus in Japan as disappointing; it also highlights problems faced by other economies, says Paul Markham of UK fund house Newton.
After weeks of China equity turbulence, demand has been rising for volatility-focused hedge funds. And Abenomics' effect on equities has been shifting demand in the Japanese market.
Cabinet minister Yasutoshi Nishimura seeks to convince a global forum of the sustainability of government policy. Prime minister Shinzo Abe’s message is simpler: buy Japan.
While the one-year verdict on Abenomics is positive, industry figures question its sustainability at an AsianInvestor forum, with wage growth forecast at 1% and inflation at 3%.
Japanese institutional investors will increasingly award mandates to foreign managers and advisers, according to Cerulli Associates and the Nomura Research Institute.