Japanese export organization says foreign investors enthused again

Japanese export organization says foreign investors enthused again    The Japanese External Trade Organization said in a newsletter Tuesday that Japan is ready to once again carry its share of the global economy as reforms implemented after the 1997-1998 Asian financial crisis are taking hold.
   'At the time there was substantial talk about whether Japan and a troubled Europe could regain their strength as 'global economic locomotives,' or whether the U.S. would be left to carry the load on its own,' the newsletter said. 'Today, however, macroeconomic, corporate, and political developments all suggest Japan is back on track and proceeding in the right direction. Business investment is surging.    Employment is growing and the Japanese consumers finally appear to be reopening their wallets. These factors are fueling higher economic growth and reducing Japan's dependence on exports and government spending.'
   JETRO's report focused on how foreign investment in Japan is beginning to surge.
   The newsletter quoted British investment firm Rathbones as calling Japan 'a standout market,' and one where 'the risk of being out is greater than the risk of being in this market.' Interest in Japan is also notable from increasing foreign investment in Japan-oriented mutual funds and Japanese stocks.
   The newsletter also said that last week the Nikkei 225 index rose to its highest levels in more than five years.
   'Interest in Japan, though, goes far beyond financially motivated investments made by fund managers,' the report said. 'It is also manifest by inward FDI flows, which have reached new highs and, for the first time, exceeded outward FDI flows in 2004.'