NEW YORK and LONDON, April 12, 2013 /PRNewswire/ -- Japan-based exporters, industrial companies selling into the domestic market and regional banks could be among the beneficiaries of the recent moves by the Japanese government to stimulate the economy, according to a white paper from The Boston Company Asset Management (TBC).
The paper, Japan: Assessing the Future of Abenomics, looks at the potential beneficiaries of the policies implemented by the government of Prime Minister Shinzo Abe, which include an expansionary monetary policy, a sizable stimulus package, and an economic growth strategy encompassing deregulation and structural reforms.
"While the weakening yen already is benefitting exporters, they could do even better if Prime Minister Abe can successfully integrate Japan into the Trans-Pacific Partnership (TPP), a free trade pact with other Asian countries, the U.S. and other countries in the Americas," said William J. Adams, portfolio strategist for TBC and the report's author. "Inclusion in the TPP would indicate willingness to open parts of Japan's economy, such as agriculture, to global competition."
The prime minister's program could benefit domestic-oriented companies in the industrial segment as they benefit from the appreciation of their property assets and future development opportunities, the report said. Regional banks could benefit from increasing lending and consolidation synergies if more aggressive reforms pass the Japanese Diet, according to the report.In addition, the report said some retailers could benefit from the ability to pass on the effects of higher prices in an economy experiencing moderate wage inflation. "Investors will have various signals over the next year to see if significant reform will be introduced in Japan that could promote improved growth prospects," said Adams. "For example, joining the TPP would indicate that Japan's views on free trade have changed for the better and provide an additional boost to exporters facing international trade barriers." Notes to editors: The Boston Company Asset Management, LLC, a BNY Mellon Investment Management boutique, provides investment management services for corporate, public, mutual funds and union sponsored and jointly trusteed retirement plans, endowments and foundations. Assets are managed by The Boston Company as well as its personnel acting as dual officers of either The Dreyfus Corporation or The Bank of New York Mellon. BNY Mellon Investment Management is one of the world's leading investment management organizations and one of the top U.S. wealth managers, with $1.4 trillion in assets under management. It encompasses BNY Mellon's affiliated investment management firms, wealth management services and global distribution companies. More information can be found at www.bnymellon.com. BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 36 countries and more than 100 markets. As of December 31, 2012, BNY Mellon had $26.2 trillion in assets under custody and/or administration, and $1.4 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com, or follow us on Twitter @BNYMellon. All information source BNY Mellon as of December 31, 2012. This press release is qualified for issuance in the UK and US and is for information purposes only. It does not constitute an offer or solicitation of securities or investment services or an endorsement thereof in any jurisdiction or in any circumstance in which such offer or solicitation is unlawful or not authorized. This press release is issued by BNY Mellon Investment Management (US) and BNY Mellon Asset Management International Limited (ex-US) to members of the financial press and media and the information contained herein should not be construed as investment advice. Past performance is not a guide to future performance. The value of investments and the income from them is not guaranteed and can fall as well as rise due to stock market and currency movements. When you sell your investment you may get back less than you originally invested. Registered office of BNY Mellon Asset Management International Limited: BNY Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England no. 1118580. Authorized and regulated by the Financial Services Authority. A BNY Mellon Company. SOURCE BNY Mellon