# Investment opportunities in Japanese equity market are attractive on weaker yen (LON:FJV)

- Link: https://www.directorstalkinterviews.com/investment-opportunities-in-japanese-equity-market-are-attractive-on-weaker-yen-lonfjv/4121179590
- Published: 2024-11-29T07:16:49+00:00
- Author: Amilia Stone

**[Fidelity Japan Trust PLC](https://www.directorstalkinterviews.com/company/fidelity-japan-trust/fjv.l)**(
[LON:FJV](https://www.directorstalkinterviews.com/company/fidelity-japan-trust/fjv.l))
published its monthly factsheet for the period ended October 2024.

**Portfolio Manager Commentary **

Japanese equities remained volatile in October, reflecting Japan / US political 
developments and geopolitical risks, though key indices registered their first positive
returns in four months. Stronger-than-expected US jobs and CPI data drove gains 
in Treasury yields, leading to a weakening of the yen. The ruling Liberal Democratic
Party-Komeito coalition failed to secure a majority of seats in the Lower House 
elections. However, the result was largely priced in, and stocks subsequently gained
on expectations that cooperation with opposition parties would lead to stimulative
economic policies. Meanwhile, the Bank of Japan kept the monetary policy unchanged
and reiterated its view that the forward risk to prices is skewed to the upside.

Following the results of the US election, long-term rates gained as expectations
for further rate cuts by the Fed waned, leading to a weakening of the yen. These
conditions are generally positive for Japanese stocks. With Prime Minister Ishiba
reappointed as Japan’s leader, the immediate policy focus will be on expansionary
fiscal measures. Despite the elevated levels of political uncertainty, positive 
structural trends such as a burgeoning cycle of rising wages and prices, progress
in governance reforms and a nascent shift in household and corporate assets are 
supportive of the Japanese equity market.  

Over the 12 months to 31 October 2024, the Trust recorded NAV and share price returns
of 5.7% and -1.3% respectively, compared to 14.9% for the index. 

[FJV 31 October 2024](https://www.directorstalkinterviews.com/wp-content/uploads/2024/11/FJV-31-October-2024.pdf)
[Download](https://www.directorstalkinterviews.com/wp-content/uploads/2024/11/FJV-31-October-2024.pdf)

**Fidelity Japan Trust PLC** (LON:FJV) aims to be the key investment of choice for
those seeking Japanese companies exposure. The Trust has a ‘growth at reasonable
price’ (GARP) investment style and approach – which involves identifying companies
whose growth prospects are being under-appreciated or are not fully recognised by
other investors. 

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