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London investors get ‘Abenomics’ pitch, urged to buy Japanese stocks

JIJI

Japanese securities industry officials are inviting institutional investors in London to invest in Japanese stocks by underscoring the expected effects of the Abe administration’s economic policies.

In a keynote speech Tuesday at the Japan Securities Summit held by the Japan Securities Dealers Association, Atsushi Saito, chief executive officer of Japan Exchange Group Inc., noted the recent trend of the yen’s depreciation and stock price rises attributed to “Abenomics,” a combination of bold monetary easing, fiscal stimulus and growth strategies.

“An exit from long-lasting deflation has come in sight,” Saito said. “Now that Japan is ripe for growth along with other Asian countries, 2013 is likely to be a banner year for Japanese stocks.”

During a panel discussion focused on the sustainability of the effects of Abenomics, Tetsufumi Yamakawa, managing director of Barclays Securities Japan, said Japan may “provide an upward surprise,” with Abenomics ensuring sustainable economic growth.

Yamakawa said he expects the yen to weaken to 100 to the dollar by the end of this year.

On the other hand, Anthony Miller, chief executive officer of PAG Japan Ltd., pointed out that Japanese firms do not look to raise shareholder return.

Former Bank of Japan Policy Board member Atsushi Mizuno said economic growth will be unsustainable without painful structural reforms.

This was the fifth Japan Securities Summit held around the world to explain the attractiveness of Japan’s securities market.