Reliance on Weak Yen Puts Japan Inc. at Risk, Top Fund Says
- T. Rowe’s McQueen cautions about sustainability of earnings
- He’s still positive on Japanese stocks, says rally to continue
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A top-performing Japan stock picker has cautioned against too much reliance on the weak yen propping up exporters profits.
With the currency nudging toward a three-decade low, some firms may be vulnerable to the sustainability of earnings, said Colin McQueen, who manages the T. Rowe Price International Value Equity Fund. His fund has beaten the majority of its global peers investing in Japan in the past 12 months with returns of about 23%, according to Bloomberg data.