Gavekal Capital: Deconstructing Japanese Equity Performance

Tuesday, February 18, 2014

Deconstructing Japanese Equity Performance

Over the last last month, Japan has been the worst performing country in the MSCI World index, down on average 5.25%.

MSCI Country Performance

Underneath the surface, the distribution of sector performance shows that while the export-oriented industries have performed poorly recently, the non-export industries have escaped most of the damage.

MSCI Japan Sector Performance

This puts a premium on stock selection as there are only a combined 45 companies in the MSCI Japan health care and consumer staples sectors.

Number of Japanese Companies in MSCI World Index