Investments in Japan set for improved 2007, fund manager forecasts

Fri, 26 Jan 2007

Investments in Japanese stocks and shares should bounce back in 2007 following a difficult year, an industry analyst has predicted.

Simon Somerville, manager of the Japan Income Fund from investments specialist Jupiter Asset Management, admitted that he found it "disappointing that the market performed so poorly" in 2006.

However, he has explained that his fund performed comparatively well compared to other regional investments and attributed this in part to the fact that his portfolio concentrates on the retail sector and real estate at the expense of financials and automotives.

More generally, he has forecasted improved prospects for investments in the coming 12 months.

"I would expect a much better year from Japanese equities in 2007 and, while the weak yen may continue to dampen returns, it does help profit growth and the overall competitiveness of the economy," he said.

In recent years, a strong automotive sector has helped the Japanese economy to exhibit sustained growth.

Brands such as Toyota, Honda and Mazda are all based in the country and have gone on to become global brands.

Toyota is currently the world's second largest automaker, behind General Motors .

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