Half-yearly Report

Date: Tuesday 14 Aug 2012

FIDELITY JAPANESE VALUES PLC

Half-Yearly Report For the 6 months ended 30 June 2012

Further to the disclosure of the Company's Half-Yearly report for the six
months ended 30 June 2012 by way of an announcement dated 26 July 2012, in
accordance with the Disclosure and Transparency Rules ("the Rules") 4.2.2 and
6.3.5 this announcement contains the text of the announcement dated 26 July
2012 together with detail on the availability of the printed form of the report
in compliance with the Rules.

The Company's half-yearly report for the six months ended 30 June 2012 has been filed with the UK Listing Authority and will shortly be available for inspection at the National Storage Mechanism(NSM):

www.hemscott.com/nsm.do

(Documents will usually be available for inspection within two business days of this notice being given)

The half-yearly report will shortly be available on the Company's website at:

https://www.fidelity.co.uk/static/pdf/common/investment-trusts/japanese/

japanese_half_yearly_report_2012.pdf

Rebecca Burtonwood, FIL Investments International, Company Secretary - 01737 836 869

14 August 2012

Contents

Objective & Performance Summary

Summary of Results
Chairman's Statement
Manager's Half-Yearly Review

Directors' Responsibility Statement

Twenty Largest Investments
Financial Statements
Investor Information
Directory
Glossary of Terms

Objective & Performance Summary

The objective of the Company is to achieve long term capital growth from an actively managed portfolio of securities primarily of small and medium sized Japanese companies listed or traded on Japanese stockmarkets.

Performance (on a total return basis)

Six months
to

30 June 2012 30 June 2012

Net asset value ("NAV") per share - undiluted 63.11p -1.7%

NAV per share - diluted 61.89p -1.4%

Ordinary share price 52.50p 0.0%

Russell Nomura Mid/Small Cap Index* (in sterling

terms) 1.80 -1.4%


* The Company's Benchmark Index

Standardised performance (on a total return basis) (%)

01/07/07 01/07/08 01/07/09 01/07/10 01/07/11

to to to to to

30/06/08 30/06/09 30/06/10 30/06/11 30/06/12

NAV per share - undiluted -17.4 -16.4 +16.0 +16.9 -9.9

Share price -19.0 -16.6 +11.6 +14.9 -9.5

Sources: Fidelity and Datastream

Past performance is not a guide to future returns

Summary of Results
30 June 31 December %

2012 2011 change

Assets

Total portfolio exposure1 £73.75m £77.02m -4.2

Shareholders' funds £61.35m £62.54m -1.9

Contracts for Difference ("CFDs") exposure £17.58m £18.22m

-3.5

NAV per share - undiluted 63.11p 64.17p -1.7

NAV per share - diluted2 61.89p 62.79p -1.4

Stockmarket Data

Russell Nomura Mid/Small Cap Index (in sterling

terms) 1.8034 1.8288 -1.4

Yen/£ exchange rate 125.147 119.572 -4.5

Ordinary share price3 period end 52.50p 52.50p 0.0

high 55.50p 63.25p

low 49.25p 47.75p

Discount - undiluted3 period end 16.8% 18.2%

high 18.8% 18.7%

low 12.1% 3.4%

Discount - diluted period end 15.2% 16.4%

Subscription share price3 period end 2.63p 5.70p

high 6.38p 14.75p

low 2.25p 5.20p

Results for the six months to 30 June
(undiluted) - see pages 12 and 13 2012 2011

Revenue return per ordinary share - undiluted 0.09p 0.04p

Capital (loss)/return per ordinary share -

undiluted (1.18p) 1.82p

Total (loss)/return per ordinary share - undiluted (1.09p)4 1.86p

1 The total exposure of the investment portfolio, including exposure to the investments underlying the long CFDs

2 The diluted NAV per ordinary share is included in this report since the
NAV per ordinary share is greater than the exercise price of the subscription
shares. Hence, if the subscription shares had been converted at the period end,
the NAV per ordinary share in issue would have been diluted

3 The high and low figures relate to the six months ended 30 June 2012 and the year ended 31 December 2011

4 The decrease in the undiluted NAV per ordinary share during the period
of 1.06 pence is less than the 1.09 pence undiluted total loss per ordinary
share because the former includes the full enhancement to the NAV per share due
to the net share repurchases during the period, whereas the latter is based on
the weighted average number of ordinary shares in issue during the period

Sources: Fidelity and Datastream

Past performance is not a guide to future returns

Chairman's Statement

Results for the six months to 30 June 2012

NAV (undiluted): 63.11p (-1.06p; -1.7%)

Ordinary share price: 52.50p (no change)

Subscription share price: 2.63p (-3.07p; -53.9%)

Discount (undiluted): 16.8% (narrowed by 1.4%)

The global economy is slowing, but not uniformly. The US appears to be
benefiting from accommodative monetary policies and well contained inflation,
although its recovery is anaemic. Meanwhile, many other economies are
confronting late-cycle or recessionary dynamics exacerbated by fiscal
tightening. The impact of these policy measures are, to some extent, being
offset by aggressive monetary interventionism. However, of concern is the
possibility that, on a global basis, the efficacy of monetary policy is
diminishing in the face of bank deleveraging, sluggish global demand and fiscal
policy risks. As such, it appears that investors no longer expect the
macroeconomic backdrop to remain supportive of risk assets, and as a result
there is a greater focus on capital preservation in the near term.

Against this global backdrop, the market rally that took off in Japan at the
start of the year started to lose momentum in late March as fears of a global
slowdown took hold. Weak economic data in China and the US, coupled with the
growing threat from the Eurozone debt crisis precipitated a correction in share
prices that accelerated in April and May. Increased risk aversion fuelled
demand for the yen as a safe haven currency, exerting further pressure on
Japanese stocks. Share prices subsequently rallied, however, as statements from
monetary authorities raised expectations of coordinated easing and fears of a
Greek exit from the Eurozone receded. During the first half of 2012, cyclical
stocks in the energy, materials and technology sectors suffered the steepest
declines. Defensive industries such as telecommunications and consumer staples
held up well in comparison.

Over the review period, your Company's net asset value declined by 1.06p per
share (-1.7%) to 63.11p per share. The discount to NAV, although large,
narrowed slightly. The impact of gearing was almost neutral (+0.19p, calculated
on a pre-exchange rate basis) while a weakening of the yen against sterling
detracted by 2.98p. Index performance and Index income added 2.82p, but the
Manager's stock selection detracted marginally from performance by 0.83p.

Six months to

30 June 2012

Attribution Analysis (pence)

NAV at 31 December 2011 (undiluted)

64.17

Impact of the Index (in yen terms)

+2.06

Impact of Index Income (in yen terms) +0.76

Impact of Stock Selection -0.83

Impact of Gearing +0.19

Impact of Exchange Rate -2.98

Impact of Charges -0.64

Share Issues/Repurchases +0.05

Cash/Residual +0.33

NAV at 30 June 2012 (undiluted) 63.11

Chairman's Statement

Performance for the six months to 30 June 2012

Rebased to 100 at 31 December 2011

Sources: Fidelity and Datastream

GEARING

The Company continues to gear through the use of Contracts For Difference ("CFDs"). Total exposure was £73.75m as at 30 June 2012, equating to gearing of 120.2%.

THE BOARD AND ITS COMMITTEES
Following the retirement of William Thomson from the Board at the conclusion of
the Annual General Meeting on 10 May 2012, I was appointed as Chairman of the
Board. Nicholas Barber will step down as a Director on
31 December 2012 and at this point the period of transition in the Board's
composition will cease and the Board will comprise five Directors.

SHARE REPURCHASES

During the six months to 30 June 2012, 250,000 ordinary shares were repurchased
for cancellation. Following the end of the reporting period, a further 128,000
ordinary shares were repurchased for cancellation.

SUBSCRIPTION SHARES

The rights attaching to a total of 7,902 subscription shares were exercised during the six months to 30 June 2012, at which point the total number of subscription shares remaining in issue was 17,236,957. The final date for exercising the rights attached to the subscription shares is 28 February 2013. The exercise price of the rights attaching to the subscription shares is 55 pence per subscription share.

After 28 February 2013, the Company will appoint a trustee to determine the net
proceeds from the sale of ordinary shares arising on the exercise of the rights
attaching to the subscription shares that have not been exercised after
deduction of costs, expenses and fees. If these net proceeds are lower than the
cost of exercising the rights attached to the said subscription shares, then
the subscription share rights will lapse. If the net proceeds are higher than
the cost of exercising the rights attached to the subscription shares then,
within fourteen days of
28 February 2013, the Company will either:

(i) exercise all the rights attached to the outstanding subscription shares and sell in the market place the ordinary shares resulting from the exercise of such rights; or

(ii) accept any offer available for the purchase of the outstanding subscription shares in excess of the exercise price together with the relevant costs, expenses and fees and the resulting net proceeds in excess of the exercise price will be paid to the holders of the outstanding subscription shares unless the amount arising to a subscription shareholder is less than £5.

PRINCIPAL RISKS AND UNCERTAINTIES

The Board, with the assistance of the Manager, has developed a risk matrix
which, as part of the internal controls process, identifies the key risks that
the Company faces. The top risks are considered to be poor management of assets
or underperformance for several years in succession; loss of reputation in the
market place; mismanagement of shareholder relationships; security of the
Company's assets; and regulatory change. Further key risks identified within
this matrix continue to be market risk, investment management risk, share price
risk, currency risk, counterparty risk, governance/regulatory risk, financial
and operational/administration risk and financial instrument risks. Information
on each of these is given in the Business Review section of the Annual Report
for the year ended 31 December 2011.

CONFIRMATION OF GOING CONCERN

The Board receives regular reports from the Manager and the Directors are
satisfied that the Company has adequate resources to continue in operational
existence for the foreseeable future. Thus they continue to adopt the going
concern basis of accounting in preparing the financial statements as outlined
in the Annual Report for the year ended 31 December 2011. The next continuation
vote will be put to shareholders at the Annual General Meeting in 2013.

GLOSSARY

To assist shareholders, a glossary of main terms has been provided on pages 26 to 28. This will be included in future annual reports.

OUTLOOK

The past financial year has been difficult for corporate Japan, however Japanese companies have again demonstrated their resilience and profit forecasts are looking strong. The Board has confidence that the Company's portfolio can make progress against the strong global headwinds currently being faced.

David Robins
Chairman
26 July 2012

Manager's Half-Yearly Review

MANAGER'S PORTFOLIO REVIEW
The Company's NAV underperformed the Russell/ Nomura Mid Small Cap Index, which
fell 1.4% during the review period. Stock selection was marginally negative, as
stockmarkets were driven by "risk-on/risk-off" sentiment rather than corporate
fundamentals.

A large part of the underperformance was sustained during the first half of the
review period when a number of holdings that formed the basis of the Company's
strong performance in 2011 fell out of favour. In particular, the portfolio's
emphasis on internet-related names proved disadvantageous. Having posted strong
returns in 2011, the portfolio's top positions, including Bit-Isle and
CyberAgent, fell on profit taking. Meanwhile, concerns about regulatory risks
hurt on-line gaming company Gree's share price. Given the strong conviction in
the growth potential of internet service providers, the overweight positions in
Bit-Isle, CyberAgent, Kakaku.com, Rakuten and GMO Payment Gateway have been
maintained. However, the positions in on-line gaming companies Gree and DeNa
have been sold as it was believed that newly introduced regulations had changed
their growth scenario.

The performance of cyclical exporters in the portfolio was mixed. Semiconductor
production equipment maker Nuflare Technology enjoyed a strong rally on the
back of Asian semiconductor makers' robust capital investment plans. However,
electronic component producer Maruwa and titanium smelter Osaka Titanium
Technologies succumbed to profit taking triggered by a reacceleration of the
yen's appreciation during the second half of the review period. Holdings in
lithium-ion battery-related names, including Toda Kogyo and GS Yuasa, also hurt
performance. However, as long term growth prospects for electric vehicles, for
which lithium-ion batteries are used, remain intact, the overweight positions
in Toda Kogyo and GS Yuasa were maintained.

On a positive note, holdings in retailers contributed to relative performance,
as the market rotated in favour of domestic retailers which are insulated from
the negative impact of the Eurozone crisis and the yen's appreciation. Major
contributors included the on-line retailer of machine tools and industrial
parts MonotaRO and clothing retailer Honeys. MonotaRO is aggressively gaining
new customers and its monthly sales are growing rapidly. Honeys is also
enjoying solid sales growth driven by new store openings and successful product
planning in China. Elsewhere, holdings in defensive healthcare-related names
such as M3 (on-line medical information services for doctors) and 3-D Matrix
(medical equipment) added value.

In terms of portfolio positioning, a balance has been maintained between domestic growth names in internet services and pro-cyclical exporters which appear to be significantly undervalued relative to their mid-term growth potential. During the market correction in the latter half of the review period, positions in electronic component makers, whose share price fell sharply amid indiscriminate sell-offs, were increased. Meanwhile, low growth defensive stocks in foods, utilities, pharmaceuticals and railways remained underweight.

THE MARKET & OUTLOOK
Recent global economic data has come in below expectations and continued
political uncertainty in the Eurozone suggests that equities globally are
likely to remain volatile. Despite the accumulation of external risks, however,
the Japanese economy is set to follow a moderate recovery path through 2012,
supported by post-quake reconstruction demand and private consumption.

Manager's Half-Yearly Review

After ending flat in the fourth quarter, the Japanese economy rebounded in the
January to March period with real GDP rising at an annualised rate of 4.7%.
Public investment centered on post-quake reconstruction and stronger than
expected private consumption, supported by eco-friendly car subsidies, were the
key drivers of economic growth. In its Outlook for Economic Activity & Prices
report, the Bank of Japan ("BoJ") forecast GDP growth of 2.3% in fiscal 2012
and 1.7% in fiscal 2013. The figures represented modest upgrades from earlier
projections.

Furthermore, the BoJ is widely expected to ease monetary policy in the second half of the year, as it moves to counter the downside risks posed by the European debt crisis, the threat of renewed yen appreciation and mounting political pressure domestically.

Despite the difficulties experienced over the past year, earnings recovery
remains on track. Supply chain disruptions stemming from the Great East Japan
Earthquake and the floods in Thailand, unprecedented yen strength and high fuel
costs represented significant hurdles. However, Japanese companies are
forecasting a recovery in fiscal 2012, with top-line growth of around 6% and a
20% increase in pre-tax profits. Key contributing factors include normalised
production, the ongoing recovery in the US and the emergence of full scale
reconstruction demand. Furthermore, the effects of supply restrictions,
inventory adjustments and yen appreciation will fade as the year progresses.
Earnings forecasts are likely to be revised upwards when external economic
conditions and currency markets stabilise as Japanese companies continue to
control costs tightly and maintain high operational leverage.

In the stockmarket, Japanese equities are once again touching historical lows
even though corporate earnings are on a clear recovery trend and shareholder
returns are improving. Around 20% of companies expect to increase dividends in
fiscal 2012, the highest ratio (based on initial guidance) since 2000.
Furthermore, valuation metrics for TOPIX-listed companies are at trough levels.
The market price-to-book ratio of 0.84x is only marginally above the
post-Lehman low of 0.83x, and a TOPIX dividend yield of around 2.7% is
substantially higher than the ten year Japanese government bond yield of 0.77%.
The upswing in profits is yet to be reflected in share prices and the market is
unlikely to continue trading below book value.

Currently stocks appear oversold, but risk aversion is pervasive, spurred on by
the crisis in Europe, and is likely to persist. Global markets are extremely
sentiment driven and irrational investor behaviour often creates opportunistic
mispricing. We believe that the current situation represents an excellent entry
point for an investment in good quality Japanese companies with solid balance
sheets and sustainable growth potential.

FIL Investments International

26 July 2012

Directors' Responsibility Statement

The Directors confirm to the best of their knowledge that:

a) the condensed set of financial statements contained within the Half-Yearly financial report has been prepared in accordance with the UK Accounting Standards Board's Statement 'Half-Yearly Financial Reports';

b) the Chairman's Statement and the Manager's Half-Yearly Review on pages
3 to 7 (constituting the interim management report) include a fair review of
the information required by Rule 4.2.7R of the FSA's Disclosure and
Transparency Rules and their impact on the condensed set of financial
statements and a description of the principal risks and uncertainties and an
assessment of the Company's status as a going concern for the remaining six
months of the financial year; and

c) in accordance with Disclosure and Transparency Rule 4.2.8R there have
been no transactions involving related parties during the six months to 30 June
2012 and therefore nothing to report with any material effect as a consequence
of such a transaction on the financial position or the performance of the
Company during that period; and there have been no changes in this position
since the last Annual Report that could have a material effect on the financial
position or performance of the Company in the first six months of the current
financial year.

The Half-Yearly financial report has not been audited or reviewed by the Company's Independent Auditor.

The Half-Yearly financial report was approved by the Board on 26 July 2012 and
the above responsibility statement was signed on its behalf by David Robins,
Chairman.

Twenty Largest Investments (including derivatives) as at 30 June 2012

Fair Total

Exposure Value1 Exposure

£'000 £'000 %2

Sekisui Chemical*

Engages in housing construction; produces housing

materials,

high-performance plastic segments and flat panel

displays 2,853 771 3.9

M3*

Provides medical related internet services 2,650 752

3.6

Takata*

Develops and manufactures safety products for

automobiles 2,558 (464) 3.5

Kakaku.com*

Provides price comparison services and product

information 2,470 409 3.3

Maruwa

Manufactures ceramic electronic components 2,123 2,123

2.9

GMO Payment Gateway

Engages in the provision of payment processing

services 1,959 1,959 2.7

CyberAgent

Engages in internet media services 1,782 1,782

2.4

Bit-Isle

Provides information technology services 1,695 1,695

2.3

LIXIL Group

Produces building materials and related equipment 1,679 1,679 2.3

HitachiHigh Technologies

Manufactures high-tech devices 1,616 1,616

2.2

Sumitomo Rubber*

Produces a wide range of rubber based products 1,445 172

2.0

Honeys

Manufactures and retails clothing 1,416 1,416

1.9

HitachiChemical

Manufactures chemicals 1,308 1,308 1.8

Nifco

Manufactures industrial plastic parts and components 1,301 1,301 1.8

JSP

Manufactures a wide range of foamed plastic products 1,219 1,219 1.6

1st Holdings

Provides software services 1,207 1,207 1.6

Disco

Manufactures precision machinery and diamond products 1,204 1,204

1.6

HitachiMetals

Manufactures and markets high-grade metal products and

materials 1,130 1,130 1.5

GS Yuasa

Produces power sports batteries 1,125 1,125

1.5

Sumitomo Electric Industries

Manufactures electric wire and optical fibre cables 1,110 1,110

1.5

Twenty largest investments 33,850 23,514 45.9

Other investments 39,902 33,779 54.1

Total Portfolio (including derivatives) 73,752 57,293

100.0

* Holding by way of CFD

1 Fair value represents the carrying value in the Balance Sheet on page 16

2 % of the total exposure of the investment portfolio, including exposure to the investments underlying the long CFDs

Income Statement

for the six months for the six months
ended for the year ended ended

30.06.12 31.12.11 30.06.11

unaudited audited unaudited

revenue capital total revenue capital total revenue capital total

Notes £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000



(Losses)/
gains on
investments
designated
at fair
value
through
profit or
loss - (2,671) (2,671) - (4,114) (4,114) - 315 315

Gains/
(losses) on
derivative
instruments
held at
fair value
through
profit or
loss - 1,720 1,720 - (312) (312) - 1,417 1,417

Income 2 728 - 728 1,445 - 1,445 767 - 767

Investment
management
fee (389) - (389) (830) - (830) (415) - (415)

Other
expenses (196) - (196) (441) - (441) (241) - (241)

Exchange
gains/
(losses) on
other net
assets 20 (199) (179) 4 483 487 5 36 41



Net return/
(loss)
before
finance
costs and
taxation 163 (1,150) (987) 178 (3,943) (3,765) 116 1,768 1,884

Finance
costs (40) - (40) (83) - (83) (39) - (39)



Net return/
(loss) on
ordinary
activities
before
taxation 123 (1,150) (1,027) 95 (3,943) (3,848) 77 1,768 1,845

Taxation on
return/
(loss) on
ordinary
activities 3 (38) - (38) (75) - (75) (41) - (41)



Net return/
(loss) on
ordinary
activities
after
taxation 85 (1,150) (1,065) 20 (3,943) (3,923) 36 1,768 1,804



Return/
(loss) per
ordinary
share

Undiluted 4 0.09p (1.18p) (1.09p) 0.02p (4.06p) (4.04p) 0.04p 1.82p 1.86p

Diluted 4 n/a n/a n/a 0.02p (4.04p) (4.02p) 0.04p 1.81p 1.85p

A Statement of Total Recognised Gains and Losses has not been prepared as there are no gains and losses other than those reported in this Income Statement.

The total column of the Income Statement is the profit and loss account of the Company.

All revenue and capital items in the above statement derive from continuing operations.

No operations were acquired or discontinued in the period.

These financial statements have been prepared in accordance with the Association of Investment Companies Statement of Recommended Practice issued in January 2009.

Reconciliation of Movements in Shareholders' Funds

share capital

share premium redemption other capital revenue total

capital account reserve reserve reserve reserve equity

Notes £'000 £'000 £'000 £'000 £'000 £'000 £'000

Opening
shareholders'
funds: 1
January 2011 24,872 81 2,437 57,955 (6,421) (13,436) 65,488

Issue of
ordinary
shares on the
exercise of
rights
attached to
subscription
shares 6 418 501 - - - - 919

Exercise of
rights
attached to
subscription
shares and
conversion
into ordinary
shares 6 (84) 84 - - - - -

Net return on
ordinary
activities
after
taxation for
the period - - - - 1,768 36 1,804





Closing
shareholders'
funds: 30
June 2011 25,206 666 2,437 57,955 (4,653) (13,400) 68,211





Opening
shareholders'
funds: 1
January 2011 24,872 81 2,437 57,955 (6,421) (13,436) 65,488

Issue of
ordinary
shares on the
exercise of
rights
attached to
subscription
shares 6 441 529 - - - - 970

Exercise of
rights
attached to
subscription
shares and
conversion
into ordinary
shares 6 (88) 88 - - - - -

Net (loss)/
return on
ordinary
activities
after
taxation for
the year - - - - (3,943) 20 (3,923)





Closing
shareholders'
funds: 31
December 2011 25,225 698 2,437 57,955 (10,364) (13,416) 62,535

Issue of
ordinary
shares on the
exercise of
rights
attached to
subscription
shares 6 2 2 - - - - 4

Exercise of
rights
attached to
subscription
shares and
conversion
into ordinary
shares 6 (1) 1 - - - - -

Repurchase of
ordinary
shares 6 (63) - 63 (129) - - (129)

Net (loss)/
return on
ordinary
activities
after
taxation for
the period - - - - (1,150) 85 (1,065)





Closing
shareholders'
funds: 30
June 2012 25,163 701 2,500 57,826 (11,514) (13,331) 61,345





Balance Sheet

30.06.12 31.12.11 30.06.11

unaudited audited unaudited

Notes £'000 £'000 £'000

Fixed assets

Investments designated at fair value through profit

or loss 56,168 58,807 63,925





Current assets

Derivative assets held at fair value through profit

or loss 5 2,435 2,202 2,973

Debtors 815 797 306

Cash at bank 3,898 4,056 3,042





7,148 7,055 6,321





Creditors

Derivative liabilities held at fair value through profit or loss

5 (1,310) (2,211) (739)

Other creditors (661) (1,116) (1,296)





(1,971) (3,327) (2,035)





Net current assets 5,177 3,728 4,286





Total net assets 61,345 62,535 68,211





Capital and reserves

Share capital 6 25,163 25,225 25,206

Share premium account 701 698 666

Capital redemption reserve 2,500 2,437 2,437

Other reserve 57,826 57,955 57,955

Capital reserve (11,514) (10,364) (4,653)

Revenue reserve (13,331) (13,416) (13,400)

Total equity shareholders' funds

61,345 62,535 68,211

Net asset value per ordinary share

Undiluted 7 63.11p 64.17p 70.06p

Diluted 7 61.89p 62.79p 67.79p




Cash Flow Statement

30.06.12 31.12.11 30.06.11

unaudited audited unaudited

£'000 £'000 £'000

Operating activities

Investment income received 388 1,017 540

CFD dividends received 120 332 166

Investment management fee paid (412) (870) (423)

Directors' fees paid (115) (137) (71)

Other cash payments (226) (227) (106)

Net cash (outflow)/inflow from operating

activities (245) 115 106





Finance costs

Interest paid on long CFDs (40) (85) (40)

Net cash outflow from finance costs (40) (85) (40)

Financial investment

Purchase of investments (18,319) (58,309) (35,134)

Disposal of investments 18,242 58,235 34,757

Net cash outflow from financial investment (77) (74) (377)

Derivative activities

Proceeds from long CFD positions closed 586 1,673 1,159

Net cash inflow from derivative activities 586 1,673 1,159

Net cash inflow before financing 224 1,629 848

Financing

Exercise of rights attached to subscription

shares 4 971 916

Repurchase of ordinary shares (129) - -

Net cash (outflow)/inflow from financing (125) 971 916

Increase in cash 99 2,600 1,764

Reconciliation of net cash movements to

movements in net funds

Net funds at the beginning of the period 4,056 1,237 1,237

Net cash 99 2,600 1,764

Exchange movements (257) 219 41





Change in net funds (158) 2,819 1,805

Net funds at the end of the period 3,898 4,056 3,042

Notes to the Financial Statements

1 ACCOUNTING POLICIES

The Half-Yearly financial statements have been prepared on the basis of the accounting policies set out in the Company's annual report and financial statements for the year ended 31 December 2011.

2 INCOME

30.06.12 31.12.11 30.06.11

unaudited audited unaudited

£'000 £'000 £'000

Income from investments designated at fair

value through profit or loss

Overseas dividends 541 1,099 579

Income from derivatives held at fair value

through profit or loss

Dividends on long CFDs 187 346 188





Total income 728 1,445 767




3 TAXATION ON RETURN ON ORDINARY ACTIVITIES

30.06.12 31.12.11 30.06.11

unaudited audited unaudited

£'000 £'000 £'000



Overseas taxation suffered 38 75 41




4 RETURN/(LOSS) PER ORDINARY SHARE

30.06.12

unaudited

revenue capital total

£'000 £'000 £'000

Undiluted 0.09p (1.18p) (1.09p)

Diluted n/a n/a n/a

The return/(loss) per ordinary share is based on the return/(loss) on ordinary activities after taxation for the period and the weighted average number of ordinary shares in issue during the period.

Net return/(loss) on ordinary
activities after taxation - undiluted 85 (1,150) (1,065)

Weighted average number of ordinary
shares in issue during the period

Undiluted 97,412,746 97,412,746 97,412,746

Diluted n/a n/a n/a

There was no diluted return/(loss) per ordinary share for the six months to 30
June 2012 because the average ordinary share price for the period was below the
exercise price of the rights attaching to the subscription shares.

The total undiluted total loss per ordinary share for the six months ended 30
June 2012 of 1.09 pence is greater than the decrease in the undiluted NAV per
ordinary share during the period of 1.06 pence
(see page 2) because the former is based on the weighted average number of
ordinary shares in issue during the period, whereas the latter includes the
full enhancement to the NAV per share due to the net share repurchases during
the period.

31.12.11

audited

revenue capital total

£'000 £'000 £'000

Undiluted 0.02p (4.06p) (4.04p)

Diluted 0.02p (4.04p) (4.02p)

The return/(loss) per ordinary share is based on the return/(loss) on ordinary activities after taxation for the period and the weighted average number of ordinary shares in issue during the year.

Net return/(loss) on ordinary
activities after taxation - undiluted

and diluted 20 (3,943) (3,923)

Weighted average number of ordinary
shares in issue during the year

Undiluted 97,224,897 97,224,897 97,224,897

Diluted 97,532,957 97,532,957 97,532,957




30.06.11

unaudited

revenue capital total

£'000 £'000 £'000

Undiluted 0.04p 1.82p 1.86p

Diluted 0.04p 1.81p 1.85p

The return per ordinary share is based on the return on ordinary activities after taxation for the period and the weighted average number of ordinary shares in issue during the period.

Net return on ordinary activities
after taxation - undiluted and diluted 36 1,768 1,804

Weighted average number of ordinary
shares in issue during the period

Undiluted 97,024,603 97,024,603 97,024,603

Diluted 97,511,524 97,511,524 97,511,524




5 DERIVATIVE INSTRUMENTS

At the period end the Company held the following CFDs.

30.06.12 31.12.11 30.06.11

fair fair fair

value exposure value exposure value exposure

£'000 £'000 £'000 £'000 £'000 £'000

Long CFDs -
assets 2,435 11,393 2,202 10,591 2,973 14,025

Long CFDs -
liabilities (1,310) 6,191 (2,211) 7,625 (739) 6,333





1,125 17,584 (9) 18,216 2,234 20,358




6 SHARE CAPITAL

30.06.12

unaudited

Shares £'000

Issued, allotted and fully paid:

Ordinary shares of 25 pence each

Beginning of the period 97,447,975 24,362

Issue of ordinary shares on the exercise of rights
attached to subscription shares 7,902 2

Repurchase of ordinary shares (250,000) (63)





End of the period 97,205,877 24,301

Issued, allotted and fully paid:

Subscription shares of 5 pence each*

Beginning of the period 17,244,859 863

Exercise of rights attached to subscription shares and
conversion into ordinary shares (7,902) (1)

End of the period 17,236,957 862





Total share capital 25,163





31.12.11

audited

Shares £'000

Issued, allotted and fully paid:

Ordinary shares of 25 pence each

Beginning of the year 95,684,520 23,921

Issue of ordinary shares on the exercise of rights
attached to subscription shares 1,763,455 441

End of the year 97,447,975 24,362

Issued, allotted and fully paid:

Subscription shares of 5 pence each*

Beginning of the year 19,008,314 951

Exercise of rights attached to subscription shares and
conversion into ordinary shares (1,763,455) (88)

End of the year 17,244,859 863





Total share capital 25,225




30.06.11

unaudited

Shares £'000

Issued, allotted and fully paid:

Ordinary shares of 25 pence each

Beginning of the period 95,684,520 23,921

Issue of ordinary shares on the exercise of rights

attached to

subscription shares 1,670,697 418





End of the period 97,355,217 24,339

Issued, allotted and fully paid:

Subscription shares of 5 pence each*

Beginning of the period 19,008,314 951

Exercise of rights attached to subscription shares and

conversion into

ordinary shares (1,670,697) (84)





End of the period 17,337,617 867





Total share capital 25,206




* The subscription shares were issued as a bonus issue to ordinary
shareholders on 11 November 2009 on the basis of one subscription share for
every five ordinary shares held. Each subscription share gives the holder the
right, but not the obligation, to subscribe for one ordinary share upon payment
of the subscription price of 55 pence per subscription share, on the last
business day of each month, commenced in February 2010 and finishing on the
last business day of February 2013. Full details of the procedure relating to
the exercise of the rights attaching to any remaining subscription shares in
issue after 28 February 2013 are given in the Chairman's Statement on page

4.

7 NET ASSET VALUE PER ORDINARY SHARE

The undiluted net asset value per ordinary share is based on net assets of £
61,345,000 (31.12.11: £62,535,000; 30.06.11: £68,211,000) and on 97,205,877
(31.12.11: 97,447,975; 30.06.11: 97,355,217) ordinary shares, being the number
of ordinary shares in issue at the period end.

The diluted net asset value per ordinary share has been calculated on the basis
of what the financial position would have been if all the rights attaching to
the outstanding subscription shares of 17,236,957 (31.12.11: 17,244,859;
30.06.11: 17,337,617) had been exercised on that date. This basis of
calculation is in accordance with guidelines laid down by the Association of
Investment Companies. Undiluted and diluted net asset values per ordinary share
are provided to the London Stock Exchange on a daily basis.

8 INVESTMENT TRANSACTION COSTS

Transaction costs are incurred in the acquisition and disposal of investments.
These are included in the gains on investments designated at fair value through
profit or loss in the capital column of the Income Statement and are summarised
below:

30.06.12 31.12.11 30.06.11

unaudited audited unaudited

£'000 £'000 £'000

Purchases 24 60 37

Sales 23 64 36





47 124 73




9 UNAUDITED FINANCIAL STATEMENTS

The results for the six months to 30 June 2012 and 30 June 2011, which are
unaudited, constitute non-statutory accounts within the meaning of Section 435
of the Companies Act 2006. The figures and financial information for the year
ended 31 December 2011 are extracted from the latest published financial
statements. These financial statements, on which the Independent Auditor gave
an unqualified report, have been delivered to the Registrar of Companies.

Investor Information

CONTACT INFORMATION

Private investors: call free on 0800 41 41 10 9am to 6pm, Monday to Saturday.

Financial advisers: can call free on 0800 41 41 81 8am to 6pm, Monday to Friday. www.fidelity.co.uk/its

Existing shareholders who have a specific query regarding their holding or need
to provide updated information, for example a change of address, should contact
the appropriate administrator.

Holders of ordinary shares

Capita Registrars, Registrars to Fidelity Japanese Values PLC, The Registry, 34 Beckenham Road, Beckenham, Kent BR3 4TU.

Telephone: 0871 664 0300 (calls cost 10p per minute plus network extras. Lines are open 8.30am to 5.30pm, Monday to Friday).

Email: ssd@capitaregistrars.com

Details of individual shareholdings and other information can also be obtained from the Registrar's website: www.capitaregistrars.com

Fidelity Share Plan investors

Fidelity Investment Trust Share Plan, PO Box 24035, 12 Blenheim Place, Edinburgh EH7 9DD. Telephone: 0845 358 1107 (calls to this number are charged at 3.95p per minute from a BT landline. Other telephone service providers' costs may vary).

Fidelity ISA investors

Fidelity, using the freephone numbers given opposite, or by writing to: UK Customer Service, Fidelity Worldwide Investment, Oakhill House, 130 Tonbridge Road, Hildenborough, Tonbridge, Kent TN11 9DZ.

www.fidelity.co.uk/its

General enquiries should be made to Fidelity, the Investment Manager and Secretary, at the Company's registered office: FIL Investments International, Investment Trusts, Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey KT20 6RP.

Telephone: 01732 36 11 44
Fax: 01737 83 68 92
www.fidelity.co.uk/its

FINANCIAL CALENDAR

30 June 2012 - Half-Yearly period end

26 July 2012 - Announcement of Half-Yearly results

Mid August 2012 - Publication of Half-Yearly report

31 December 2012 - Financial year end

March /April 2013 - Publication of Annual Report

May 2013 - Annual General Meeting

Directory

BOARD OF DIRECTORS
David Robins (Chairman)

Sir Laurie Magnus (Audit Committee Chairman)

Nicholas Barber, CBE (Senior Independent Director)

Simon Fraser
Philip Kay
David Miller, OBE

MANAGER, SECRETARY AND REGISTERED OFFICE

FIL Investments International
Beech Gate
Millfield Lane
Lower Kingswood
Tadworth
Surrey
KT20 6RP

FINANCIAL ADVISERS AND STOCKBROKERS

Canaccord Genuity
88 Wood Street
London
EC2V 7QR

INDEPENDENT AUDITOR
Grant Thornton UK LLP

Chartered Accountants and Registered Auditor

30 Finsbury Square
London
EC2P 2YU

BANKERS AND CUSTODIAN

JPMorgan Chase Bank (London Branch)

125 London Wall
London
EC2Y 5AJ

REGISTRARS
Capita Registrars
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU

LAWYERS
Slaughter and May
One Bunhill Row
London
EC1Y 8YY

Speechly Bircham LLP
6 New Street Square
London
EC4A 3LX

Glossary of Terms

BENCHMARK

Russell Nomura Mid/Small Cap Index against which the performance of the Company is measured.

CONTRACT FOR DIFFERENCE (CFD)

A Contract For Difference is a derivative. It is a contract between the Company
and a third party at the end of which the parties exchange the difference
between the opening price and the closing price of an underlying asset (which,
for the Company's CFDs are equity shares, which the Company might otherwise
purchase directly). It does not involve the Company buying or selling the
underlying asset, only agreeing to receive or pay the movement in its share
price. A Contract For Difference allows the Company to gain access to the
movement in the share price by depositing a small amount of cash known as
margin. The Company only uses "long" Contracts for Difference. On "long"
Contracts for Difference, dividends are received and interest is paid.

DERIVATIVES

Financial instruments (such as futures, options and Contracts For Difference) whose value is derived from the value of an underlying asset.

DISCOUNT

If the share price of the Company is lower than the net asset value per share,
the Company's shares are said to be trading at a discount. The discount is
shown as a percentage of the net asset value. The opposite of a discount is a
premium. It is more common for an investment trust to trade at a discount than
a premium.

FAIR VALUE

The fair value is the best estimate of the value of the investments, including derivatives, at a point in time and this is measured as:

· Listed investments valued at bid prices, or last prices, where available, otherwise at published price quotations;

· Unlisted investments valued using an appropriate valuation technique in the absence of an active market;

· Contracts For Difference are valued as the difference between the settlement price of the contract and the value of the underlying shares in the contract (unrealised gains or losses).

GEARING OR GEARING EXPOSURE

Gearing or gearing exposure describes the level of a Company's leverage and is
usually expressed as a percentage. It can be obtained through the use of bank
loans, bank overdrafts or Contracts For Difference in order to increase a
Company's exposure to stocks. Gearing is permitted in order to buy or gain
exposure to further investments. If assets rise in value, gearing magnifies the
return to ordinary shareholders. Correspondingly, if the assets fall in value,
gearing magnifies the fall. The gearing percentage reflects the amount of
leverage the Company uses to invest in the market. Contracts For Difference are
used as a way of gaining exposure to the price movements of shares without
buying the underlying shares directly.

NET ASSET VALUE (NAV)

Net asset value is sometimes also described as "shareholders' funds", and
represents the total value of the Company's assets less the total value of its
liabilities. For valuation purposes it is common to express the net asset value
on a per share basis.

PREMIUM
If the share price of the Company is higher than the net asset value per share,
the Company's shares are said to be trading at a premium. The premium is shown
as a percentage of the net asset value. The opposite of a premium is a
discount.

RETURN

The return generated in the period from the investments:

· Income Return reflects the dividends and interest from investments and other income net of expenses, finance costs and taxation;

· Capital Return reflects the return on capital, excluding any income returns;

· Total Return reflects the aggregate of capital and income returns in the period.

SHARE REPURCHASES
An increasingly popular way for investment trust companies to return cash to
their shareholders is through offering to repurchase a proportion of shares
currently held. Companies seek the permission of shareholders to do so at their
annual general meetings allowing them to repurchase a proportion of their total
shares (up to 14.99%) in the market at prices below the prevailing net asset
value per share. This process is also used to enhance the net asset value per
share and to reduce the discount to net asset value.

SHAREHOLDERS' FUNDS

Shareholders' funds are also described as "net asset value" and represent the total value of the Company's assets less the total value of its liabilities.

TOTAL PORTFOLIO EXPOSURE

The total of fixed asset investments at fair value plus the fair value of the underlying securities within the Contracts For Difference.

TOTAL RETURN PERFORMANCE

The return on the share price or net asset value per share taking into account
the rise and fall of share prices and the dividends paid to shareholders. Any
dividends received by the shareholder are assumed to have been reinvested in
additional shares (for share price total return) or the Company's assets (for
net asset value total return).

Warning to Shareholders

SHARE FRAUD WARNING

Share fraud includes scams where investors are called out of the blue and offered shares that often turn out to be worthless or non-existent, or an inflated price for shares they own. These calls come from fraudsters operating in 'boiler rooms' that are mostly based abroad.

While high profits are promised, those who buy or sell shares in this way usually lose their money.

The Financial Services Authority (FSA) has found most share fraud victims are
experienced investors who lose an average of £20,000, with around £200m lost in
the UK each year.

PROTECT YOURSELF
If you are offered unsolicited investment advice, discounted shares, a premium
price for shares you own, or free company or research reports, you should take
these steps before handing over any money:

1. Get the name of the person and organisation contacting you.

2. Check the FSA Register at www.fsa.gov.uk/fsaregister to ensure they are authorised.

3. Use the details on the FSA Register to contact the firm.

4. Call the FSA Consumer Helpline on 0845 606 1234 if there are no contact details on the Register or you are told they are out of date.

5. Search our list of unauthorised firms and individuals to avoid doing business with.

6. REMEMBER: if it sounds too good to be true, it probably is!

If you use an unauthorised firm to buy or sell shares or other investments, you
will not have access to the Financial Ombudsman Service or Financial Services
Compensation Scheme (FSCS) if things go wrong.

REPORT A SCAM

If you are approached about a share scam you should tell the FSA using the share fraud reporting form at www.fsa.gov.uk/scams, where you can find out about the latest investment scams. You can also call the Consumer Helpline on 0845 606 1234.

If you have already paid money to share fraudsters you should contact Action Fraud on 0300 123 2040

FURTHER INFORMATION
The Fidelity Individual Savings Account ("ISA") is offered and managed by
Financial Administration Services Limited. The Fidelity Investment Trust Share
Plan is managed by FIL Investments International. Both companies are authorised
and regulated by the Financial Services Authority. The Fidelity Investment
Trust Share Plan is administered by The Bank of New York Mellon and shares will
be held in the name of The Bank of New York Nominees Limited.

The value of savings and eligibility to invest in an ISA will depend on
individual circumstances and all tax rules may change in the future. Fidelity
investment trusts are managed by FIL Investments International. Fidelity only
gives information about its own products and services and does not provide
investment advice based on individual circumstances. Should you wish to seek
advice, please contact a Financial Adviser.

Issued by Fidelity Japanese Values PLC.

Please note that the value of investments and the income from them may fall as
well as rise and the investor may not get back the amount originally invested.
Past performance is not a guide to future returns. For funds that invest in
overseas markets, changes in currency exchange rates may affect the value of
your investment. Investing in small and emerging markets can be more volatile
than other more developed markets.

Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only. Investees should also note that the views expressed may no longer be current and may have already been acted upon by Fidelity.

Fidelity, Fidelity Worldwide Investment, the Fidelity Worldwide Investment logo and symbol are trademarks of FIL Limited.

The content of websites referred to in this document do not form part of this Half-Yearly Report.

Fidelity, Fidelity Worldwide Investment, the Fidelity Worldwide Investment logo and symbol are trademarks of FIL Limited

Printed on FSC certified paper.

100% of the inks used are vegetable oil based 95% of press chemicals are recycled for further use and on average 99% of any waste associated with this production will be recycled.

The FSC logo identifies products which contain wood from well managed forests certified in accordance with the rules of the Forest Stewardship Council.

This document is printed on Cocoon Silk; a paper made using 50% recycled fibre from genuine waste paper and 50% virgin fibre.

The unavoidable carbon emissions generated during the manufacture and delivery of this document, have been reduced to net zero through a verified, carbon offsetting project.

XLON

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