Japanese Equity researcher, Harver Group has today announced plans to make significant investments within the Japanese markets off the back of the weak Yen which has fallen to a 3 year low.
CHUO-KU, Japan -- According to Mr Nathan Bradley, Head of Investment Analysis at Harver Group the Yen has declined against 13/16 major currencies following the announcement of a greater than expected trade deficit in April, leaving the currency at its 3 year low; however Mr Bradley insists this is an opportunity to be capitalised upon rather than a cue for international investors to minimise exposure to Japan financial instruments, and further states that Harver Group will therefore be making significant investments in the Japanese markets.
Joseph Anderson Jnr, Head of Principle Investments at Harver Group, said “the decline of the Japanese Yen to its 3 year low against its global peer currencies will give rise to instability concerns in the minds of many investors, but we believe the Yen is massively undervalued, meaning those cheap stocks on the NIKKEI are cheaper still for foreign investors, and therefore Harver Group clients are being advised to capitalise on the trend at this time”.
Stephen Rogers, Harver Group’s Director of Private Equity also gave comment on the announcement saying “Japan must do something about this widening trade deficit, and in this case the Bank of Japanfailing to manage expectations has only exacerbated the problem”. Currently at 102.97 to the US dollar, the Yen trades at its weakest levels since 2008, showing similar figures when compared to the euro Mr Rogers went on to say, “Japans central bank will now aim to stimulate the economy further through quantitative easing, which will be met with mixed feelings no doubt, but what is important to remember is that the local economy has shown fantastic growth more recently and confidence in Japan in general is relatively high. Simply put we believe the Yen will now be widely perceived to be undervalued, which coupled with stable market conditions and a strong growth trend, we believe will mean the Japanese markets yield strong capital growth for our investors in the medium term.”
No official figures were given in today’s announcement with regards to the size of the investment Harver Group will be making, but Stephen Rogers.