Although the Tokyo stock exchange is still the second largest after New York, the Japan exchange traded funds (ETFs) are struggling to keep up. iShares MSCI Japan Index (EWJ) and iShares S&P/Topix 150 Index (ITF) are both up 2% year-to-date, but pale in comparison to nearby countries like Singapore (iShares MSCI Singapore (EWS) is up 20%) and Malaysia (iShares MSCI Malaysia (EWM) is up 32%).
Carl Delfeld for ETFXRAY.com reports growth in Japan has been anemic since 1990, while other economies have surged. In that time, Japan dropped from one third of global market capitalization to less than one-tenth. In the same period, the number of foreign companies listed on the Tokyo exchange dropped from 125 to 25. Companies seem to be looking for markets more open to growth. As the country works to solve their problems, the question is when will businesses and investors take the risk and look to Japan for opportunities?
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.