Re-Examining Japan's Economy

Jul. 16, 2022 6:03 AM ET, , , , , , , , , , , , , , , , , , ,
Franklin Templeton
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Summary

  • The yen’s tumble to two-decade lows may propel exports and help quicken a rebound for its inbound travel and tourism sector as Japan eases pandemic border restrictions.
  • Japanese equities are quite undervalued relative to many other developed nations, and we believe Japan’s market is worth a closer look as a slice of investor portfolios.
  • With the yen now at a fresh 24-year low against the US dollar, this export-driven market may be poised for a boost not only from its manufacturing sector, but also from rebounding tourism.

Graph Falling Down in Front Of Japan Flag. Crisis Concept

NatanaelGinting/iStock via Getty Images

By Dina Ting, CFA, Head of Global Index Portfolio Management, Franklin Templeton Exchange-Traded Funds

Can Japan spur political and economic policy reforms in the aftermath of former Prime Minister Shinzo Abe's tragic demise and the subsequent

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