Will Abenomics reform Japan for the long term?
The Japanese market has been in a strange place for some time now. While Abenomics has certainly shown some promise, albeit without managing to live up to the hype that it suggested, the truth of the matter seems to be that the market is unsure as to whether Japan is about to enter a period of time where uncertainty causes an end to the bull market that has been in place since Abenomics hit full flow sustained in part by increased government investment.
A Long-Term Change?
Abenomics has successfully increased the number of independent directors in leading companies, meaning that a lack of company investment could well be a thing of the past now. This could be spurred on by shareholder power as stockholders start to consider whether or not they want companies to continue to sit on lots of cash assets when they could be getting a better return from their investment. If this fails to happen then investors are going to have to start looking at different options to see how they can increase their returns.
While there are many ways to invest, it is always important to look into how much risk you are willing to take with an investment. With this in mind, investors may start to look for ways to speculate that work whether we are experiencing a bull market or a bear market. One example of this can be seen by usinga company that offers the opportunity to invest using a CFD (contract for difference) instrument model. This means investors can speculate on outcomes without having to actually own any assets, meaning that if you are worried about having to buy into companies, you can avoid doing so by using a CFD rather than buying stocks and shares.
Threats Still Linger
While the changes made by Prime Minister Abeseem to have made a difference, providing an opportunity for potential big returns for investors, two key threats still linger for the Japanese economy. The first of these is the lingering issue over the level of debt that the government has racked up; it has been borrowed cheaply, but we don't yet know what will happen if stagnation persists in the economy, rather than the hoped-for economic explosion.
Perhaps, though, the second issue is a more worrying long-term trend: an ageing population that is likely to see a shortage of labour in the future. The most worrying stat in this area is the fact that the labour shortage has hit a 43-year high. The impact of this could be huge with a lack of demand for jobs, although the recent unemployment figure increase to 3.1% does show that people are prepared to leave their jobs to seek out better prospects.
Given that in the past Japanese workers were simply happy to live out their entire career in one company, this drive and determination to look for a better job rather than to settle for anything on offer, combined with the reforms driven through in Abenomics, highlights the fact that Japan may not be in a perfect situation where the economy is ready to enjoy a boom period, but is certainly in a place to have a period of growth despite taking on challenges that many Western economies are simply afraid to even discuss.
News On Japan - Nov 26
Panicked passengers on a Shinkansen bullet train were evacuated at a central Japan station on Friday night, after a plastic bag containing suspicious liquid was found onboard.
News On Japan - Nov 26
A 29-year-old man has been arrested for meeting an underage teen girl, with sexual intent, after sending her messages, promising to make her "the happiest in the world".
News On Japan - Nov 25
Inui Street, the famed autumn walk within the Imperial Palace in central Tokyo, opened to the public from Saturday.
News On Japan - Nov 25
Nissan Motor Corporation has announced plans to transition all its vehicles produced in the United Kingdom to electric vehicles (EVs).
News On Japan - Nov 25
A JR West Japan train conductor has been arrested for secretly filming eight women in the toilet of the express train "Haruka" while on duty.
News On Japan - Nov 25
Tofukuji Temple, home to 2,000 maple trees and renowned as one of Kyoto's premier autumn hotspots, features the Tsutenkyo Bridge, and the breathtaking 'sea of autumn leaves'.
News On Japan - Nov 25
The strongest cold snap of the season has brought a dramatic drop in temperatures to northern Japan, where snow began falling Friday morning, with up to 50 cm expected in Hokkaido and Tohoku by Saturday evening, and a chance of blizzards.
News On Japan - Nov 24
It's Shichi-Go-San, the Japanese festival season for celebrating the healthy growth of children, with Aibo the robot dog giving prayer at a shrine in Fukuoka, on Friday.
NHK - Nov 24
Japanese police are investigating a stabbing incident that took place at a music arena in Yokohama City, south of Tokyo, on Thursday.
News On Japan - Nov 24
The amount of undeclared income by wealthy people in Japan has reached a record high of 98 billion yen, among the worst offenders being scrap gold wholesalers, breeders and yakiniku restaurants, the National Tax Agency announced on Friday.
Total Film - Nov 24
After hitting the big screen in its native Japan on November 3, Godzilla Minus One is about to make its way overseas – and it's a hit with international critics.
NHK - Nov 24
Tokyo has a new landmark, a 330-meter-high skyscraper that opened on Friday. The Mori JP tower has 64 floors for shops, offices and residences. It's the tallest building in Japan, a title that previously belonged to the Abeno Harukas commercial and business tower in Osaka, western Japan.
theceomagazine.com - Nov 24
Shitennō-ji temple is one of Osaka’s most important Buddhist temples. Built in the sixth century during the rule of Prince Shotoku, it has stood firm as the high-rises of the modern-day city have towered above it.
News On Japan - Nov 23
As street dance reaches fever pitch in the lead up to the 2024 Paris Olympics with the inclusion of breakdancing, one of Japan's largest street dance events was held in Yoyogi Park, Shibuya, Tokyo.
News On Japan - Nov 23
Russians continue to be the worst offenders among cars with foreign diplomatic number plates when it comes to not paying off parking fines in Japan.
News On Japan - Nov 23
As Kyoto's autumn foliage reaches its peak, swarms of tourists have converged on the ancient capital, captivated by stunning displays like Wednesday evening's illumination at Kiyomizu Temple.