Japan : Successful bet for Shinzo Abe – 26/10/17

Prime Minister Shinzo Abe won a decisive victory in Japan’s parliamentary elections on Sunday, as his ruling bloc retains a qualified majority that could allow it to demand a revision of the country’s pacifist constitution.

This election should allow him to stay in power until 2021.

Shinzo Abe was the favorite candidate of the Japanese financial markets, who hope to continue his policy of stimulating the Japanese economy (the “abenomics”), notably characterized by public investments to support growth and an ultra-accommodative monetary policy. .

Japan has achieved for several years an exceptional outperformance.

The two main Japanese indices, the Nikkei and the Topix (broad index with around 2,000 stocks), have since the end of 2011 6 years of progress:

The Nikkei225 has thus increased from 8455 points at the end of 2011 to 21 708 points currently, or 157% increase (+ 13.6% since the beginning of 2017)

One can invest in Japan via many ETFs, among them:

iShares, en Dollar : EWJ (MSCI Japan ETF)

Lyxor, en Euro : JPN (Japan Topix ETF)

 

JPN : Monthly data

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