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The Japanese economy, one of the world's largest, is projected to grow at a rate of 2.5% in 2007 as well as 2008 SG Research, 3rd Quarter 2007. The International Monetary Fund (IMF) is forecasting 0.3% inflation for 2007 due to positive signs from consumption, employment and corporate investment. In the corporate world, the pace of earnings growth is positive and the overall picture is largely optimistic with improving profit margins. Robust demand from China and other emerging countries will continue to support Japan's export growth. The unemployment rate, a key barometer of economic well-being, was at a nine-year low of 3.7% in June 2007 Bloomberg. Demand for services also grew at the fastest pace in six months.
TOPIX is a free-float adjusted market capitalization-weighted index composed of 1,728 companies listed on the First Section of TSE. The index offers a wider range of Japanese stocks than other major indices, making it a reliable indicator of movements in the Japanese market. The Lyxor ETF Japan (TOPIX®) aims to achieve a result that corresponds closely to the underlying index. With this ETF, investors can participate in the performance of the Japanese corporate world and gain exposure to instant market diversification, through a single vehicle traded in real-time on SGX.
"The TOPIX index is widely used as key benchmark by institutional investors throughout the world, for measuring the performance of the Japanese economy," said Ms Sandra Lee, Managing Director & Head of Retail, Marketing and Product Development at Société Générale who heads up the Lyxor ETF Platform in Asia. "The launch of Lyxor ETF Japan (TOPIX®), making a total of seven ETFs (i.e. six Asian equity ETFs and one commodities ETF) listed in Singapore, signifies our commitment to developing a comprehensive range of investment tools to help investors achieve their goals. Lyxor ETF is investment made easy as it provides investors with the combined benefits of diversification, transparency, intra-day liquidity and cost efficiency. Investors can buy and sell Lyxor ETF on SGX through brokers or Internet brokerage accounts at any time throughout the trading day like normal company shares."
Mr Hsieh Fu Hua, Chief Executive Officer, SGX, said, "Once again, we are pleased to work with Lyxor to develop our ETF marketplace and position SGX as the one-stop ETF platform for access to the Asian markets. The Lyxor ETF Japan (TOPIX®) will provide our investors with another cost-effective avenue to gain exposure to the Japanese market. It also adds breadth to the current suite of Japanese products that are actively traded on SGX, ranging from futures and options to structured warrants."
Mr Atsushi Saito, President & CEO of Tokyo Stock Exchange, Inc. said, "TOPIX is based on all domestic stocks listed on the TSE First Section, and is used widely throughout the world not only as an economic and statistical indicator representing Japan, but also as a benchmark for Japanese stocks and a vehicle for investment. We firmly believe that access to Japanese stock market will be further facilitated through TOPIX, and we have high expectations that usage of the index will become even more widespread in the future."
Details of the Lyxor ETF Japan (TOPIX®) are as follows:
