Both the Japanese and Australian stock markets have shown strong performance recently, hitting historic highs. The choice between them depends on various factors such as your investment goals, risk tolerance, and market analysis.
Consideration of both markets indicators such as GDP, CPI, Unemployment rates, Industrial protection, Trade balance and Major bank(s) interest rates can assist in making an informed decision on which market is more favourable.
Australia has experienced 29 years of uninterrupted annual growth, which is a unmatchedby any other developed economy. Australia is also Japan's most important energy security partner, supply, and 43% of Japan's LNG, and 66% of its coal in 2022.
According to the East Asia Forum, the Nikkei 225 index has increased by around 30% since January 2023, outpacing US and European stocks. Some reasons for the rise include:
* Low interest rates
* Large asset purchases by the Bank of Japan
* Depreciation of the yen against the dollar
* Foreign investors seeing Japan as a safer harbor
According to Fidelity International, Japanese equities still offer compelling value and investors are underexposed to the market.
According to Herbert Smith Freehills, Japanese investors are comfortable with Australia as a stable and reliable destination for their capital. This has provided a powerful foundation for partnerships to flourish between industry, government, and research institutions within the two countries.
According to Siblis Research, Australia has the best average dividend yield among the world's largest economies. As of December 31, 2022, the S&P/ASX 300's trailing 12-month dividend yield was 4.5%, the highest among major developed markets.
According to Nikkei Asia, Japan's dividend yield is about 2.3% on the TSE Prime Market.
According to Digital Commons, Australian firms have the highest dividend yields and growth rates, while Japanese firms have the lowest.
As a Kiwi investor I feel that Australia offers a reliable and stable market for my investments.
Presently I'm in PFP:ASX with a 0.07 dividend due 5Apr24. Last years dividend yield was 3.30%. I purchased in December 2023, and my return is presently 6.76%.
My choice of market is Australia.
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