Opening up tourism could boost other stocks

Tokyo Japan’s stocks are already among the global topper shapers. While the Dow Jones index has fallen by a fifth and the German Dax by almost a quarter since the beginning of the year, the Japanese Nikkei 225 index has lost only nine percent in value.

Now, the final reopening of borders to tourists on October 11 is reviving hopes for a positive turnaround in equity and currency markets. Nicholas Smith, strategist at the CLSA in Tokyo, expects “the mother of all reopening deals”. Smith has identified 115 companies that are trading 30 percent or more below their pre-corona levels and could benefit from renewed tourist flows.

Other experts also believe that the opening of the border could slow down the collapse of the national currency. The yen recently fell to its weakest level in about 30 years.

Japan is the only G7 country to have almost completely barred tourists because of the corona pandemic. This was a heavy blow for parts of the local economy.