Sony Corporation (ADR) (SNE), Toyota Motor Corporation (ADR) (TM): Three Stocks for Japan’s Abenomics

There’s already some evidence that it may be working. Ford Motor Company (NYSE:F)’s CEO Alan Mulally called Japan a currency manipulator last month. Although Ford Motor Company (NYSE:F) has benefited from a broad-based recovery in auto sales, Toyota Motor Corporation (ADR) (NYSE:TM) could steal market share from its American rivals with a weaker yen.

In March, a Morgan Stanley analyst told Bloomberg Businessweek that Toyota Motor Corporation (ADR) (NYSE:TM) was benefiting $1,500 per car due to the weaker yen.

But it isn’t just the yen. Kingdon thinks workers in the US and Japan are about to get raises, and that should benefit auto sales.

Hitachi is a huge conglomerate

Investors looking for a broader play might be interested in Hitachi. It’s a complex company with nearly a dozen different business segments, including financial and construction.

Its two unprofitable divisions, consumer electronics and automotive systems, should benefit from a cheaper yen. As with Sony, a weaker yen makes Japanese electronics more attractive to foreign buyers. And if a car maker like Toyota Motor Corporation (ADR) (NYSE:TM) is benefiting from a weak yen, it could support Hitachi’s automotive unit.

Moreover, should Abe be successful in getting Japan’s government to spend money on infrastructure projects (the second arrow), it should benefit Hitachi’s infrastructure, construction and power divisions.

Investing in Japanese stocks

Unquestionably, Japan’s been the hottest market of 2013, and it could just be getting started. With Abe consolidating his political power, he should be able to keep working towards improving Japan’s economy.

Sony Corporation (ADR) (NYSE:SNE), Toyota Motor Corporation (ADR) (NYSE:TM) and Hitachi all stand to benefit. A weaker yen supports all three companies’ exports, while infrastructure spending could support Hitachi’s related business segments. Of course, if internal Japanese demand jumps, all three stocks are poised to reward shareholders.

The article 3 Stocks for Japan’s Abenomics originally appeared on Fool.com and is written by Salvatore “Sam” Mattera.

Joe Kurtz has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Salvatore “Sam” is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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