4 Stocks to Cash in on Japan's Recovery
More than 300 Japanese stocks trade in the U.S.
More than 300 Japanese stocks trade in the U.S. But many are thinly traded, which could mean big gaps between buy and sell prices. For that reason, it’s best to stick with big-name firms if you want to buy individual Japanese stocks.
Companies that derive most of their revenue overseas — such as Canon (symbol CAJ, $35), the camera producer, and tire maker Bridgestone (BRDCY, $72) — will see an immediate lift to earnings because of the weaker yen (prices are as of April 5). Automakers will also benefit from the yen’s fall. Toyota Motor (TM, $107), one of the world’s largest automakers, also boasts one of the most efficient manufacturing processes in the industry. And it has worked hard to diversify its production and sales globally. The stock trades at 14 times estimated year-ahead earnings.
Mega-banks were considered untouchable by investors after the bubble burst in 1990 because they were awash in bad loans. But Mitsubishi UFJ Financial Group (MTU, $7), which runs one of Japan’s biggest banks (the Bank of Tokyo-Mitsubishi UFJ), is a favorite stock these days of Taizo Ishida, co-manager of Matthews Japan fund. A big reason is Mitsubishi’s growing market share in the Asian corporate-loan market. While European and U.S. banks were busy licking their wounds after 2008, many firms looking to borrow money had nowhere to go. Enter the Japanese banks. “They’re now dominant in Asia,” says Ishida. Mitsubishi shares trade at only 14 times estimated earnings for the fiscal year that ends next March. Yet analysts expect the company’s earnings to rise 15% annually over the next three to five years.
![https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png](https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-320-80.png)
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Nellie joined Kiplinger in August 2011 after a seven-year stint in Hong Kong. There, she worked for the Wall Street Journal Asia, where as lifestyle editor, she launched and edited Scene Asia, an online guide to food, wine, entertainment and the arts in Asia. Prior to that, she was an editor at Weekend Journal, the Friday lifestyle section of the Wall Street Journal Asia. Kiplinger isn't Nellie's first foray into personal finance: She has also worked at SmartMoney (rising from fact-checker to senior writer), and she was a senior editor at Money.
-
Astronomical AI Spending Is Causing Jitters on Wall Street
The Kiplinger Letter Amid rampant excitement over artificial intelligence, a new round of skepticism is taking hold. Here are four forecasts about the future of generative AI.
By John Miley Published
-
Protect Your Loved Ones With an Estate Plan
Here are eight things you can do to help protect your family.
By Mario Hernandez Published
-
Stock Market Today: Dow Outperforms After IBM Earnings
Investors also parsed a strong reading on second-quarter GDP and a dismal decline in durable goods.
By Karee Venema Published
-
Stock Market Today: Stocks Tumble on Disappointing Big Tech Earnings
Poorly received quarterly results from Alphabet and Tesla sparked a steep selloff in equities.
By Dan Burrows Last updated
-
Stock Market Today: Mega-Cap Tech Rallies to Drag Markets Higher
Markets focused on upcoming earnings from Magnificent 7 stocks rather than chaos in D.C.
By Dan Burrows Published
-
Stock Market Today: Stocks Tumble After Spectacular Global Internet Crash
Market participants rushed out of risk assets to end a wild week of trading.
By Dan Burrows Published
-
Stock Market Today: Dow Sinks 533 Points as Big Banks, Mega Caps Slump
Goldman Sachs and Apple were two of the worst-performing blue chip stocks on Thursday.
By Karee Venema Published
-
Stock Market Today: Semis Get Slammed and Blue Chips Bounce
The potential for more curbs on tech sales to China set off a rotation into blue chips.
By Dan Burrows Published
-
Stock Market Today: Dow Spikes 742 Points After UnitedHealth Earnings
The S&P 500 and Nasdaq also scored wins Tuesday albeit with much smaller gains than the blue chip Dow.
By Karee Venema Published
-
Stock Market Today: Dow Adds 210 Points as Apple, Goldman Hit New Highs
A big rally in blue chips and some dovish Fed speak boosted the equities market Monday.
By Karee Venema Published