SOURCE: Russell Investments

Russell Investments

December 12, 2014 09:29 ET

Japanese Equity Market Returned 10.2% Year-to-Date as Investors Turn Their Attention to Upcoming Elections: Russell Indexes

Russell Expert in Wait and See Mode on Japanese Equities

SEATTLE, WA--(Marketwired - Dec 12, 2014) - Year-to-date, as of 9 December, investors in Japanese equities have been rewarded with a 10.2% return as measured by the Russell Asia-Pacific Index. Attention will now focus on Japan's special election on Sunday, considered by many to be a referendum for the future of 'Abenomics' and Prime Minister Shinzo Abe's economic reform agenda.

Wouter Sturkenboom, Russell Investments Senior Investment Strategist, said:
"Recent political challenges for Prime Minister Abe in Japan create concern for us that the 'third arrow' of his reform program may be at risk. In addition, investors appear to still be viewing Japan as more of a short-term tactical trade, versus a longer-term strategic investment. Having said that, we do believe Abe has been able to maintain popularity and, despite recent challenges, has retained momentum for his reform agenda. Going forward, we are in wait and see mode on Japanese equities."

To hear more from Wouter Sturkenboom and the Russell Investments team of global strategists on the outlook for 2015, look for the new Russell Investments 2015 Global Market Outlook on Russell's website next week. In the meantime, you can access the most recent fourth quarter update on the Russell Investments website.

Russell Asia Pacific Index Returns

Russell Index / Index Country Constituent 2014 YTD as of December 9
Russell Asia Pacific Index 13.0%
Russell Asia Pacific Index - Japan 10.2%
Russell Asia Pacific Index - India 48.2%
Russell Asia Pacific Index - Thailand 37.2%
Russell Asia Pacific Index - Philippines 36.6%
Russell Asia Pacific Index - Indonesia 36.6%
Russell Asia Pacific Index - New Zealand 26.2%
Russell Asia Pacific Index - Taiwan 16.5%
Russell Asia Pacific Index - Hong Kong 15.2%
Russell Asia Pacific Index - China 14.9%
Russell Asia Pacific Index - Singapore 13.4%
Russell Asia Pacific Index - Australia 7.8%
Russell Asia Pacific Index - Korea 3.1%
Russell Asia Pacific Index - Malaysia -0.2%

Source: Russell Investments. Returns are total returns (reflect reinvestment of dividends and distributions) and are denominated in euros.

The Russell Global Index measures the performance of the global equity market based on all investable equity securities, and is constructed to provide a comprehensive and unbiased barometer for the global segment. The Index includes more than 10,000 securities in 47 countries, and covers 98% of the investable global market. All securities in the Russell Global Index are classified according to size, region, country and sector; as a result the index can be segmented into more than 300 distinct benchmarks.

Please note: Indexes are unmanaged and cannot be invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Russell's publication of the Indexes or Index constituents in no way suggests or implies a representation or opinion by Russell as to the attractiveness of investing in a particular security. Inclusion of a security in an Index is not a promotion, sponsorship or endorsement of a security by Russell and Russell makes no representation, warranty or guarantee with respect to the performance of any security included in a Russell Index.

Global equity involves risk associated with investments primarily in equity securities of companies located around the world, including the United States. International securities can involve risks relating to political and economic instability or regulatory conditions. Investments in emerging or developing markets involve exposure to economic structures that are generally less diverse and mature, and to political systems which can be expected to have less stability than those of more developed countries.

Investments in emerging or developing markets involve exposure to economic structures that are generally less diverse and mature, and to political systems which can be expected to have less stability than those of more developed countries. Securities may be less liquid and more volatile than US and longer-established non-US markets.

Opinions expressed by Mr. Sturkenboom reflect market performance as of December 9, 2014 and are subject to change at any time based on market or other conditions without notice. Past performance does not guarantee future performance.

Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional. The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.

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