Minefield of risks faces investors in Japan and South Korea

There is seemingly no easing of risk for the two countries, despite the anticipated third-quarter economic improvement.

Asian investors may be comforted by the fact China’s economy was brought back to life in the second quarter, after the lockdown-induced collapse in the first months of the year, but the difficulty of managing the region’s risk-return profiles remains.

No fewer than 15 countries in Asia experienced higher risk during the first half of this year, according to Euromoney’s survey of experts, including Japan and South Korea, as Covid-19 dealt a heavy economic blow – and there is little indication yet of it being defeated.

Japanese troubles

Take Japan and its eternal battle to rid itself of damaging deflation.

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