Back to top

Real Time Insight

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Japan seems to be finally turning around. The country’s GDP grew at an annualized rate of 3.5% during the first quarter of 2013, up sharply from 1% growth recorded during the previous quarter and substantially stronger than estimates.

It appears that the aggressive expansionary measures taken by the Abe government, including “unlimited” easing in order to weaken the currency, make exports competitive and pull Japan out of its deflationary spiral, are delivering results. Japanese exports and consumer spending accelerated during the quarter, though businesses still seemed a bit reluctant to spend. Exports benefited immensely from a weaker yen—down ~18% year-to-date against the dollar.

Japanese stocks are up about 45% this year in anticipation of stronger economic growth. And while the ETF tracking the broader equity market iShares MSCI Japan Index Fund (EWJ - ETF report) is up 24% year-to-date, the two currency hedged ETFs--WisdomTree Japan Hedged Equity Fund (DXJ - ETF report) and MSCI Japan Hedged Equity Fund Fundamentals (DBJP - ETF report), which provide exposure to Japanese stocks without any exposure to the currency are up more than 40% during the same period. (DXJ vs. DBJP: Which is the Better Hedged Japan ETF?)

So, while it appears that the worst for the Japanese economy is now over, long lasting results will depend on how policymakers address the underlying structural problems, that have been affecting the economy for decades. The government will have to introduce significant fiscal and structural reforms to maintain the growth momentum.

Do you think that Japan is now on path to economic recovery after more than two decades of stagnation?

5 Stocks to Double in 2014

Today, you are invited to receive a free Special Report from Zacks Investment Research. It reveals five companies that could gain +100% and more in the next 12 months.

One is set to ride a little-known All-American energy boom. Another is a chip maker looking for big gains through Google Glass. Another could be the next alternative energy "Tesla."

Close This Panel X

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%