A gap is set to open up between Japan and the rest of Asia in terms of capital expenditure over the next few years, according to a survey by Standard Poor's.
While Abenomics has revitalised Japanese industry, the rest of Asia particularly the energy and basic materials sectors looks set for a lengthy period of retrenchment.
The survey forecasts that capex for non-financial groups in Asia ex Japan will drop by 3% this year, 6% in 2015 and a further 5% in 2016. In contrast, Japanese companies will see a 2% improvement this year, a 3% fall in 2015 and flat growth in 2016.
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