» Japan’s rising but Asia’s economic gains must wait

Japan’s rising but Asia’s economic gains must wait

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Japan’s rising but Asia’s economic gains must wait

Japan’s emergence from more than a decade of stagnation could mean greater demand for its neighbors’ exports, more Japanese investment in the rest of the region and stronger Asian currencies.

But people are not holding their breath and expecting Japan to give a sudden boost to Asian growth.

Economists say it could take years for income levels in Japan to rise to levels that will translate into big demand for Asian goods or for Japanese capitalists to invest with vigor in Asia. All it may mean in the near term is some extra investment in Asian shares and bonds.

Japan is in the 17th quarter of an economic upturn and the monetary authorities in the world’s second-biggest and Asia’s largest economy have just decided to end a five-year, super-loose monetary policy.

“The economic behavior of such a giant awakening could have a lot of things that could surprise the market,” said Nicholas Kwan, an economist with Standard Chartered Bank. “But it won’t happen overnight.”

More: today.reuters.com

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