Entering text into the input field will update the search result below

Japan's Steady Performance To Continue

David Kotok profile picture
David Kotok


  • Overall, Japan has dealt with and weathered the pandemic relatively well, as have a number of its Asia-Pacific neighbors.
  • Japan's service sector, which accounts for 69% of GDP, has been the fastest growing part of the economy over the past four decades.
  • Over the past 12 months, JPXN returned 29.4%, essentially the same as EWJ did.

By Bill Witherell

The Bank of Japan's Governor Kuroda said to parliament on March 5th that there is no need to widen the band set for its long-term yield target, as the BOJ intends to maintain its policy objective to keep borrowing costs low to support the economy. This underlining of a stable monetary policy will help continue the progressive recovery of the Japanese economy following the shock the COVID-19 pandemic dealt the economy and its effects on the global economy. In the current quarter, production and trade are holding up well, supported by strong foreign demand and a robust manufacturing sector. However, declining consumption and services due to the COVID state of emergency mean that GDP will likely register a mild decline in the quarter. The economy is expected to return to positive growth in subsequent quarters with the eventual lifting of the emergency restrictions, the rollout of vaccines, supportive fiscal and monetary policies, and a strengthening of foreign demand boosted by the fiscal stimulus in the US and accelerating growth in China.

Last week, Prime Minister Yoshihide Suga announced that the COVID state of emergency for the Tokyo metropolitan region will be extended another two weeks because the situation has not improved sufficiently to end the restrictions. This extension will delay a bit the economic recovery. Japan has been slower than most other major economies to unroll its vaccination program. However, overall, Japan has dealt with and weathered the pandemic relatively well, as have a number of its Asia-Pacific neighbors. It ranks 38th globally in its total number of cases, with only 8,178 deaths. Japan's cases per million of the population is just 3,469, compared to 89,233 for the US, 61,844 for the UK, 29,808 for Germany, and 15,034 for the world average.

Following the 5% slump in the

This article was written by

David Kotok profile picture
David Kotok co-founded Cumberland Advisors in 1973 and has been its Chief Investment Officer since inception. David’s articles and financial market commentaries have appeared in The New York Times, The Wall Street Journal, Barron’s, and other publications. He is a frequent contributor to Bloomberg TV and Bloomberg Radio, Yahoo Finance TV, and other media. He has authored or co-authored four books, including the second edition of From Bear to Bull with ETFs and Adventures in Muniland. He holds a B.S. in economics from The Wharton School of the University of Pennsylvania, an M.S. in organizational dynamics from The School of Arts and Sciences at the University of Pennsylvania, and an M.A. in philosophy from the University of Pennsylvania.David has served as Program Chairman and currently serves as a Director of the Global Interdependence Center (GIC), www.interdependence.org, whose mission is to encourage the expansion of global dialogue and free trade in order to improve cooperation and understanding among nation states, with the goal of reducing international conflicts and improving worldwide living standards. David chaired its Central Banking Series and organized a five-continent dialogue held in Cape Town, Hong Kong, Hanoi, Milan, Paris, Philadelphia, Prague, Rome, Santiago, Shanghai, Singapore, Tallinn, and Zambia (Livingstone). He has received the Global Citizen Award from GIC for his efforts. David is a member of the National Business Economics Issues Council (NBEIC), the National Association for Business Economics (NABE), has served on the Research Advisory Board of BCA Research and is currently on the advisory board of RiskBridge Advisors. He has also served as a Commissioner of the Delaware River Port Authority (DRPA) and on the Treasury Transition Teams for New Jersey Governors Kean and Whitman. Additionally, he has served as a board member of the New Jersey Economic Development Authority and as Chairman of the New Jersey Casino Reinvestment Development Authority.

Recommended For You


Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

Related Stocks

SymbolLast Price% Chg
iShares MSCI Japan ETF
WisdomTree Japan Hedged Equity Fund ETF
Xtrackers MSCI Japan Hedged Equity ETF
abrdn Japan Equity Fund, Inc.
JPMorgan BetaBuilders Japan ETF

Related Analysis

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.