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The appointment of Taro Aso as the new prime minister of Japan should provide the political stability to make Japan’s economy more attractive to foreign investors, he said. Mr Aso is a former cabinet minister in the government of Jonichiro Koisumi, widely credited with economic reforms of recent years.

The Jupiter fund has benefited from previous reforms, although equities recently fell to a near four-year low.

Mr Somerville said: “As a result, valuations of Japanese equities have become very attractive. The average dividend yield has risen over 2 per cent, extending the gap between it and the 10-year government bond yield, which has now fallen below 1.5 per cent.”

Japanese companies are also embarking on acquisition sprees domestically and abroad, he said. Positive inflation caused by high energy prices should also encourage a move back to equities.

“British investors should continue to benefit from the yen’s strength, as the Japanese market’s returns are boosted once converted into sterling terms," Mr Somerville said. "The yen is expected to be firm as investors unwind so-called yen carry trades for fear of being caught up in the financial turmoil.”