On my recent trip to Japan there was definitely a growing feeling of prosperity. Meiji Dori, a street that connects Shibuya and Aoyama/Omotesando is bustling with new stores, there are plenty of new restaurants and the
skyline is filled with new skyscrapers, like Roppongi Hills.
Economists point to different reasons for the recovery:
- Lessening of Regulation
- Prime Minister Junichiro Koizumi’s efforts to restore the country's bank’s health
- Change in Japanese business culture towards firing
- Heavy investment in R&D
- The emergence of China as a huge market
That said, there is a lot of work left to be done:
- The privatization of the postal savings system
- Dealing with the soaring public debt
- Handling the under financed pension system
There are huge opportunities for asset management companies. The firms that are able to figure out the pressure points of the Japanese will ultimately succeed. Japan is definitely back and should be in the consideration set as a major market for asset management companies.