The Japanese exchange traded funds (ETFs) are geared up for 2007. Japanese markets underperformed most global markets as positive economic changes took longer than most predicted. iShares MSCI Japan (EWJ) and iShares S&P Topix 150 (ITF) were up 5% and 8% respectively in 2006. Sluggish consumer spending helped undercut growth according to the International Herald Tribune.
All this aside, corporate earnings are expected to boost worker’s income and fuel domestic consumption in the new year, maybe revving up growth to 2%. Officials say the economy is on "sound footing" with a "relatively bright" outlook. With the end of deflation on the horizon, the Bank of Japan said their economy was "expanding moderately".
Other Japanese ETFs available for investors include WisdomTree Japan High Yielding Equity (DNL), WisdomTree Japan Total Dividend (DXJ), streetTRACKS Russell Nomura Prime (JPP) and streetTRACKS Russell Nomura Small (JSC).
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.