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<SEC-DOCUMENT>0000897204-07-000081.txt : 20070622
<SEC-HEADER>0000897204-07-000081.hdr.sgml : 20070622
<ACCEPTANCE-DATETIME>20070622165012
ACCESSION NUMBER:		0000897204-07-000081
CONFORMED SUBMISSION TYPE:	N-CSRS
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20070430
FILED AS OF DATE:		20070622
DATE AS OF CHANGE:		20070622
EFFECTIVENESS DATE:		20070622

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			JAPAN EQUITY FUND INC
		CENTRAL INDEX KEY:			0000866095
		IRS NUMBER:				223060893
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		N-CSRS
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-06142
		FILM NUMBER:		07936944

	BUSINESS ADDRESS:	
		STREET 1:		ONE EVERTRUST PLAZA
		STREET 2:		C/O DAIWA SECURITIES TRUST CO
		CITY:			JERSEY CITY
		STATE:			NJ
		ZIP:			07302
		BUSINESS PHONE:		2019153054

	MAIL ADDRESS:	
		STREET 1:		DAIWA SECURITIES TRUST CO
		STREET 2:		ONE EVERTRUST PLAZA
		CITY:			JERSEY CITY
		STATE:			NJ
		ZIP:			07302

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	JAPAN EMERGING EQUITY FUND INC
		DATE OF NAME CHANGE:	19920407
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-CSRS
<SEQUENCE>1
<FILENAME>japan-ncsr.htm
<DESCRIPTION>APRIL 30, 2007
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>UNITED STATES</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>SECURITIES AND EXCHANGE COMMISSION</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt;text-align:center;'><font SIZE=2>WASHINGTON, D.C. 20549</font></p>


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            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:3.0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:3.0pt'><font SIZE=2>FORM N-CSR S</font></p> </td>
        <td width="211" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:3.0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font SIZE=2>INVESTMENT COMPANIES</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font SIZE=2>INVESTMENT COMPANY ACT FILE NUMBER 811-06142</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>THE JAPAN EQUITY FUND, INC.</font></B></p>

<p style=' margin-bottom:36pt; margin-top:0pt;text-align:center;'><font size=2>(Exact name of registrant as specified in charter)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>c/o Daiwa Securities Trust Company</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>One Evertrust Plaza, 9th Floor</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>Jersey City, New Jersey 07302-3051</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>(Address of principal executive offices) (Zip code)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>c/o Daiwa Securities Trust Company</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>One Evertrust Plaza, 9th Floor</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>Jersey City, New Jersey 07302-3051</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>(Name and address of agent for service)</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>REGISTRANT&#146;S TELEPHONE NUMBER, INCLUDING AREA CODE:  (201) 915-3054</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'><font size=2>DATE OF FISCAL YEAR END:  October 31</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>DATE OF REPORTING PERIOD:  April 30, 2007</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:12;'><i><b><font size=3>The Japan Equity Fund, Inc.</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 2.  Report to Stockholders.</font></b></p>

<p style=' margin-bottom:24pt; margin-top:0pt;text-align:left;'><b><font size=3>General Information (unaudited)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>The Fund</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The investment objective of the Fund is to outperform over the long term, on a total return basis (including appreciation and dividends), the Tokyo Stock Price Index (&#147;TOPIX&#148;), a composite market-capitalization weighted index of all common stocks listed on the First Section of the Tokyo Stock Exchange (&#147;TSE&#148;).  The Fund seeks to achieve its investment objective by investing substantially all of its assets in equity securities of companies listed on the TSE or listed on the over-the-counter market in Japan or listed on other stock exchanges in Japan.  Daiwa SB Investments (U.S.A.)  Ltd. is the Fund&#146;s Investment Manager.  Daiwa SB Investments Ltd. is the Fund&#146;s Investment Adviser.  The Fund implements an &#147;active&#148; portfolio management policy, which is an approach that involves quantitative valuation of securities to identify an appropriate universe of
securities from which to select investments, with judgmental analysis then applied to this universe to determine the actual investments to be made by the Fund.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Shareholder Information</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Fund&#146;s shares are listed on the New York Stock Exchange (&#147;NYSE&#148;).  The Fund understands that its shares may trade periodically on certain exchanges other than the NYSE, but the Fund has not listed its shares on those other exchanges and does not encourage trading on those exchanges.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Fund&#146;s NYSE trading symbol is &#147;JEQ&#148;.  Weekly comparative net asset value (&#147;NAV&#148;) and market price information about the Fund is published each Monday in </font><i><font size=2>The Wall Street Journal</font></i><font size=2>, each Sunday in The New York Times and each Saturday in </font><i><font size=2>Barron&#146;s</font></i><font size=2>, and also appears in many other newspapers.  The Fund&#146;s daily NAV is also available by visiting www.daiwast.com or calling (800) 933-3440 or (201) 915-3020.  Also, the Fund&#146;s website includes a monthly market review, a list of the Fund&#146;s top ten industries and holdings, its proxy voting policies and procedures, its code of ethics and its audit committee charter.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Inquiries</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Inquiries concerning your registered share account should be directed to the American Stock Transfer &amp; Trust Company (the &#147;Plan Agent&#148;) at the number noted below.  All written inquiries should be directed to The Japan Equity Fund, Inc., c/o Daiwa Securities Trust Company, One Evertrust Plaza, 9th Floor, Jersey City, NJ 07302-3051.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Proxy Voting Policies and Procedures</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>A description of the policies and procedures that are used by the Fund&#146;s Investment Manager to vote proxies relating to the Fund&#146;s portfolio securities is available (1) without charge, upon request, by calling collect (201) 915-3054; (2) by visiting www.daiwast.com; and (3) as an exhibit to the Fund&#146;s annual report on Form N-CSR which is available on the website of the Securities and Exchange Commission (the &#147;Commission&#148;) at www.sec.gov.  Information regarding how the Investment Manager votes these proxies is now available by calling the same number and the Commission&#146;s website.  The Fund has filed its report on Form N-PX covering the Fund&#146;s proxy voting record for the 12-month period ended June 30, 2006.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>2</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:12;'><i><b><font size=3>The Japan Equity Fund, Inc.</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Quarterly Portfolio of Investments</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>A Portfolio of Investments is filed as of the end of the first and third quarters of each fiscal year on Form N-Q and is available on the Commission&#146;s website at www.sec.gov and the Fund&#146;s web site at www.daiwast.com.  Additionally, the Portfolio of Investments may be reviewed and copied at the Commission&#146;s Public Reference Room in Washington D.C. Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.  The quarterly Portfolio of Investments will be made available without charge, upon request, by calling (201) 915-3054.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Certifications</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Fund&#146;s chief executive officer has certified to the NYSE that, as of June 1, 2006, he was not aware of any violation by the Fund of applicable NYSE corporate governance listing standards.  The Fund also has included the certifications of the Fund&#146;s chief executive officer and chief financial officer required by Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002 in the Fund&#146;s Form N-CSR filed with the Commission for the period of this report.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Dividend Reinvestment and Cash Purchase Plan</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>A Dividend Reinvestment and Cash Purchase Plan (the &#147;Plan&#148;) is available to provide Shareholders with automatic reinvestment of dividends and capital gain distributions in additional Fund shares.  The Plan also allows you to make optional annual cash investments in Fund shares through the Plan Agent.  A brochure fully describing the Plan&#146;s terms and conditions is available on the Fund&#146;s web site at www.daiwast.com and from the Plan Agent by calling (866) 669-9904 or by writing The Japan Equity Fund, Inc., c/o the American Stock Transfer &amp; Trust Company, 59 Maiden Lane, New York, NY 10038.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>3</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:12;'><i><b><font size=3>The Japan Equity Fund, Inc.</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt;text-align:left;'><b><font size=3>Shareholder Letter (unaudited)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:right;'><font size=2>May 17, 2007</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Dear Shareholders:</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>It is our pleasure on behalf of the Board of Directors to present the Semi-Annual Report for The Japan Equity Fund, Inc. (the &#147;Fund&#148;) for the six months ended April 30, 2007.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font size=2>Table 1.  Net asset value (&#147;NAV&#148;) performance in comparison with the benchmark (TOPIX), </font><i><font size=2>U.S.  Dollar</font></i><font size=2> (&#147;</font><I><font SIZE=2>USD</font></I><font size=2>&#148;) </font><i><font size=2>base</font></i></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="139" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Latest 6  Months (Nov 06 &#150; April 07) %</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="499" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>JEQ (NAV)</font> </p> </td>
        <td width="139" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:44.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.17</font></p> </td> </tr>
    <tr >
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>TOPIX</font> </p> </td>
        <td width="139" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
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<p style='margin-left:0pt;text-indent:44.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.32</font></p> </div> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Difference</font> </p> </td>
        <td width="139" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:39.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;1.15</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font size=2>Table 2</font><i><font size=2>.  </font></i><font size=2>Performance in comparison with the benchmark, Japanese Yen (&#147;</font><I><font SIZE=2>JPY</font></I><font size=2>&#148;) base</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>  </td>
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            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Latest 6  Months (Nov 06 &#150; April 07) %</font></b></p>  </div>  </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>JEQ (Equity only)</font> </p> </td>
        <td width="139" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:44.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.80</font></p> </td> </tr>
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        <td width="499" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>TOPIX</font> </p> </td>
        <td width="139" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:44.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.85</font></p> </div> </td> </tr>
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        <td width="499" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Difference</font> </p> </td>
        <td width="139" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:39.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;1.05</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Comment</font></b></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>During the period from November 2006 to April 2007, the net asset value of the Fund increased 2.17% in USD terms</font><i><font size=2>.  </font></i><font size=2>Over the same period, the benchmark TOPIX index advanced 3.32% in USD terms and, as a result, the Fund underperformed the benchmark by 1.15%.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>In JPY terms, the performance of the equity portion of the portfolio (excluding expenses and the cash position effect) was 4.80%, while the TOPIX index was up 5.85% in JPY terms.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Relative to the TOPIX index, the sector selection effect on the Fund&#146;s portfolio was +0.01%, while the stock selection effect was &#150;1.07% (see Table 3).</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>As illustrated in Table 4, the sector selection effect on the Fund&#146;s portfolio was essentially flat, as the positive contributions made by the Fund&#146;s overweight position in machinery stocks and underweight in banks were, for the most part, offset by the negative contributions derived from the Fund&#146;s underweighting in both the food and other products industries</font><i><font size=2>.  </font></i><font size=2>There was also a sizable negative stock selection effect within the electrical appliances, wholesale trade, construction and metal product sectors.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>4</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:12;'><i><b><font size=3>The Japan Equity Fund, Inc.</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>During the period, major negative contributors included Fujitsu in the electrical appliances sector and NHK Spring among metal products stocks</font><i><font size=2>.  </font></i><font size=2>Fujitsu&#146;s stock price dropped, as its semiconductor and hard disk businesses have suffered significantly due to intensified industry competition</font><i><font size=2>.  </font></i><font size=2>NHK Spring shares also remained weak, as a result of both changes to their product mix, and union and re-tooling issues at the company&#146;s U.S. auto parts subsidiary</font><i><font size=2>.  </font></i><font size=2>Among benchmark stocks, the Fund&#146;s portfolio did not hold any shares of Nintendo (other products), Mitsubishi Estate (real estate) or Mitsui &amp; Co. (wholesale &amp; trade), which had a negative impact on the performance of
the Fund during the period.</font></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font size=2>Table 3</font><i><font size=2>.  </font></i><font size=2>Attribution Analysis Summary, JPY base</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="499" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>  </td>
        <td width="139" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Latest 6  Months (Nov 06 &#150; April 07) %</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="499" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>JEQ (Equity only)</font> </p> </td>
        <td width="139" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:44.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.80</font></p> </td> </tr>
    <tr >
        <td width="499" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>TOPIX</font> </p> </td>
        <td width="139" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:44.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.85</font></p> </div> </td> </tr>
    <tr >
        <td width="499" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Difference</font> </p> </td>
        <td width="139" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:39.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;1.05</font></p> </td> </tr>
    <tr >
        <td width="499" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Breakdown</font></b></u><u></u></p> </td>
        <td width="139" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="499" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Sector Selection</font> </p> </td>
        <td width="139" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:44.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.01</font></p> </td> </tr>
    <tr >
        <td width="499" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Stock Selection</font> </p> </td>
        <td width="139" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:39.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;1.07</font></p> </td> </tr>
    <tr >
        <td width="499" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Others</font> </p> </td>
        <td width="139" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:44.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.01</font></p> </td> </tr>
    <tr >
        <td width="499" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total</font> </p> </td>
        <td width="139" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; padding:1.0pt 0in 0in 0in'>
<p style='margin-left:0pt;text-indent:39.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;1.05</font></p> </div> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font size=2>Table 4</font><i><font size=2>.  </font></i><font size=2>Sector &amp; Stock Selection Effects, Sector by Sector</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="639" style='border-collapse:collapse'>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Portfolio Position %</font></b></p> </div> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Market Weight %</font></b></p> </div> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Portfolio Return</font></b><br> <b><font size=2>%</font></b></p> </div> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Benchmark Return</font></b><br> <b><font size=2>%</font></b></p> </div> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Sector Allocation Effect</font></b><br> <b><font size=2>%</font></b></p> </div> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Stock Selection Effect</font></b><br> <b><font size=2>%</font></b></p> </div> </td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>TOPIX Industry</font></b></p> </div> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Fishery, Agriculture &amp; Forestry</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.09</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>12.54</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.01</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mining</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.27</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>8.56</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.01</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Construction</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.55</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.95</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;10.09</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.62</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.05</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.32</font></p> </td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Foods</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.49</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.70</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>13.27</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>14.19</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.17</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.01</font></p> </td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Textiles &amp; Apparel</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.60</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.06</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;5.61</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.03</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.12</font></p> </td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Pulp &amp; Paper</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.20</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.34</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.72</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;2.35</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.01</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.01</font></p> </td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Chemicals</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.62</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.24</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.68</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.79</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.01</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.13</font></p> </td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Pharmaceutical</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.62</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.37</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7.34</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.94</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.02</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.11</font></p> </td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Oil &amp; Coal Products</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.20</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.75</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.23</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.81</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.08</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.01</font></p> </td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Rubber Products</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.20</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.57</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.24</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.75</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.03</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.04</font></p> </td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Glass &amp; Ceramics Product</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.83</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.17</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;1.90</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>18.19</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.04</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.24</font></p> </td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Iron &amp; Steel</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.13</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.11</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>54.55</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>41.95</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.03</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.23</font></p> </td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Nonferrous Metals</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.98</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.29</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.41</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>8.43</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.03</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.11</font></p> </td>
        <td  width="0">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Metal Products</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.27</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.61</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;15.91</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7.20</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.01</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.32</font></p> </td>
        <td  width="0">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Machinery</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6.16</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.08</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>32.01</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>19.31</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.28</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.68</font></p> </td>
        <td  width="0">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Electrical Appliances</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>13.93</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>13.93</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.14</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>8.96</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.04</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.95</font></p> </td>
        <td  width="0">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Transport Equipment</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>12.66</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.97</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.10</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.10</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.01</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.02</font></p> </td>
        <td  width="0">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Precision Instruments</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.03</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.29</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>15.67</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;1.19</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.04</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.22</font></p> </td>
        <td  width="0">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other Products</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.85</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.83</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>14.72</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>21.10</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.19</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.03</font></p> </td>
        <td  width="0">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Wholesale Trade</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.47</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.98</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.58</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>16.67</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.01</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.34</font></p> </td>
        <td  width="0">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Retail Trade</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.84</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.39</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;11.10</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;6.30</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.09</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.13</font></p> </td>
        <td  width="0">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Banks</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>11.15</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>12.83</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;12.91</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;13.12</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.35</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.05</font></p> </td>
        <td  width="0">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other Financing Business</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.50</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.78</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;5.96</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;8.72</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.10</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.07</font></p> </td>
        <td  width="0">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Securities &amp; Commodity Futures</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.17</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.23</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>13.41</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>10.26</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.01</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.05</font></p> </td>
        <td  width="0">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Insurance</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.62</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.57</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.27</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.94</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.04</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.10</font></p> </td>
        <td  width="0">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Real Estate</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.95</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.01</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>14.20</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>18.21</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.01</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.09</font></p> </td>
        <td  width="0">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>5</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:12;'><i><b><font size=3>The Japan Equity Fund, Inc.</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="639" style='border-collapse:collapse'>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Portfolio Position %</font></b></p> </div> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Market Weight %</font></b></p> </div> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Portfolio Return</font></b><br> <b><font size=2>%</font></b></p> </div> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Benchmark Return</font></b><br> <b><font size=2>%</font></b></p> </div> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Sector Allocation Effect</font></b><br> <b><font size=2>%</font></b></p> </div> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Stock Selection Effect</font></b><br> <b><font size=2>%</font></b></p> </div> </td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>TOPIX Industry</font></b></p> </div> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Land Transportation</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.92</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.18</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>16.65</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7.87</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.05</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.27</font></p> </td>
        <td  width="0">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Marine Transportation</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.72</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.68</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>39.74</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>50.31</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.01</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.05</font></p> </td>
        <td  width="0">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Air Transportation</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.37</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.95</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.01</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td>
        <td  width="0">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Warehouse &amp; Harbor Trans</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.23</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>14.70</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.02</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.00</font></p> </td>
        <td  width="0">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Info &amp; Communication</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.89</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.21</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.20</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7.32</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.02</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.17</font></p> </td>
        <td  width="0">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Electric Power &amp; Gas</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.25</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.58</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>18.94</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>15.57</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.02</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.11</font></p> </td>
        <td  width="0">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:9.0pt;text-indent:-9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Services</font> </p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.20</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.34</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.10</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;1.33</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;0.01</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.02</font></p> </td>
        <td  width="0">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="223" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="72" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>100.00</font></p> </td>
        <td width="61" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>100.00</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.80</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.85</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.01</font></p> </td>
        <td width="71" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&#150;1.07</font></p> </td>
        <td  width="0">
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Market Review (November 2006 &#150; April 2007)</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In Japanese yen terms, the TOPIX index advanced 5.85% during the six-month period from November 2006 to April 2007</font><i><font size=2>.  </font></i><font size=2>The Tokyo equity market rallied from the end of November until February, eclipsing a 15-year high amid optimistic global economic expectations as well as an expansion of reorganization activity fueled to some extent by excess liquidity</font><i><font size=2>.  </font></i><font size=2>However, the market has undergone a correction since late February, and has remained volatile throughout the months of March and April.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Following the February correction, the global equity markets have recouped most of their losses and many markets have once again reached historical highs</font><i><font size=2>.  </font></i><font size=2>The major drivers of these recent gains are not altogether different from those that led the market prior to the correction, namely a resilient global economy and resurgent corporate reorganization activity</font><i><font size=2>.  </font></i><font size=2>The global economy remains robust, driven largely by Europe and Asia, which have been partially supported by the growth of emerging countries within each region</font><i><font size=2>.  </font></i><font size=2>Mergers and acquisitions (&#147;M&amp;A&#148;) transactions and other reorganization activities have remained active, as corporations have been eager to improve returns by repositioning themselves, while plenty of liquidity exists
in the financial markets</font><i><font size=2>.  </font></i><font size=2>The U.S. stock markets have rebounded in tandem with other world markets, as many large U.S. corporations have benefited from the global economic expansion</font><i><font size=2>.  </font></i><font size=2>However, the outlook for the domestic U.S. economy remains in check, as U.S. consumers may be hit by such issues as subprime mortgage problems and higher energy prices going forward</font><i><font size=2>.  </font></i><font size=2>Compared to its global counterparts, the recovery of the Tokyo market has thus far been rather disappointing, due in large part to concerns over the excessively conservative profit guidance released by Japanese corporations.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>For the reasons we describe below, we expect the Japanese markets to gradually catch up to their overseas counterparts late this year, as corporate profit outlooks will remain strong despite the fact that the market is expected to move sideways, for the most part, during the earnings announcement season which will continue until June.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(1)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The global economic outlook is less influenced by the U.S. economy</font></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>It has become increasingly apparent that we will have to deal with both sluggish economic growth (of 1.5% to 2.5%) and low single-digit profit growth in the United States during 2007</font><i><font size=2>.  </font></i><font size=2>However, the economic outlook for the rest of the world, including Asia, Europe and other emerging market countries, remains more upbeat, effectively offsetting the United States weakness</font><i><font size=2>.  </font></i><font size=2>While in the past it was said that, &#147;when the U.S. sneezes, other countries catch a cold&#148;, these days are clearly over in Asia and Europe.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>6</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:12;'><i><b><font size=3>The Japan Equity Fund, Inc.</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(2)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>More balanced Japanese economic growth</font></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>In contrast to the United States, the Japanese economic recovery has been driven by increased corporate exports and capital expenditures, against a backdrop of robust global economic growth led by the Brazil, Russia, India and China (&#147;BRIC&#148;) markets</font><i><font size=2>.  </font></i><font size=2>Based on recent household surveys, consumption began to pick up in the first quarter of 2007, supported by an improved employment outlook, including a shift from temporary to full-time workers</font><i><font size=2>.  </font></i><font size=2>As many baby boomers begin to retire over the next few years, Japanese companies will be able to absorb the costs of wage increases which will be required to either keep existing employees or attract younger employees, without increasing total labor costs</font><i><font size=2>.  </font></i><font size=2>In possession of newfound time and money,
retirees could subsequently increase discretionary spending on travel and hobbies, among other things; however, we believe that the majority of retirement funds will either be saved or invested in investment trusts and other vehicles in order to supplement pension income</font><i><font size=2>.  </font></i><font size=2>The impact of increased domestic consumption on the Japanese economic recovery will insulate the economy, decreasing its vulnerability to external economic conditions and, therefore, we expect growth of around 2% for the year ending March 2008.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(3)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>End of asset deflation</font></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>For the first time in 16 years, Japanese land prices rose in 2006</font><i><font size=2>.  </font></i><font size=2>Double digit gains in land prices were recorded in metropolitan areas, as the global property boom permeated Japan&#146;s larger cities via real estate investment trusts</font><i><font size=2>.  </font></i><font size=2>The price of land in Japan is currently based on cash flow estimates, not on the hope of ever increasing land prices as was the case in the 1980&#146;s</font><i><font size=2>.  </font></i><font size=2>Despite the precautions taken by the Bank of Japan and other monetary authorities to monitor real estate loans, we do not expect a negative impact from bad real estate loans on banks&#146; balance sheets.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
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        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(4)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>No inflation and low interest rates</font></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>We expect that the Bank of Japan will raise interest rates another 25 basis points, to 0.75%, by the end of this year, and an additional 25 basis point hike, to 1.0%, by the end of March 2008</font><i><font size=2>.  </font></i><font size=2>Declining unit labor costs will keep inflation low and, despite our expectations of modest wage increases for younger workers, total labor costs should either remain flat or decline due to retiring baby boomers.</font></p>


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    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(5)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Undervalued yen to continue</font></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>The value of foreign currency-denominated financial assets held by Japanese individuals reached &yen;40 trillion as of December 31, 2006 (accounting for 2.7% of the &yen;1,500 trillion worth of total household financial assets), twice as much as the &yen;20 trillion recorded at the end of September 2003</font><i><font size=2>.  </font></i><font size=2>In addition to yen carry trades, the outflows of individuals&#146; money through higher yielding investment trusts (which invest primarily in foreign securities) will keep the appreciation of the yen in check.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(6)</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Conservative management guidance is a major risk factor</font></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>Given the uncertain U.S. economic outlook and volatile yen exchange rates, Japanese corporate management will be conservative with their earnings forecast guidance (which will be released together with annual business results)</font><i><font size=2>.  </font></i><font size=2>Also, a fiscal year 2007 tax reform to revamp Japan&#146;s depreciation rules is expected to have a negative affect on corporate accounting figures, and could reduce operating profit growth by 3% to 4%, while cash flows from operations should increase, reflecting the lower tax rates</font><i><font size=2>.  </font></i><font size=2>Based on management guidance, profit growth for the year ending March 2008 will likely be flat or, possibly, a low single digit number</font><i><font size=2>.  </font></i><font size=2>In our view, this is a major reason why the Tokyo market will fail to break the highs achieved at the end
of February going forward.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Outlook</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Tokyo equity market has a tendency to lag behind the New York and most other world markets</font><i><font size=2>.  </font></i><font size=2>This was the case in the second half of last year due to the strong influence of international investors</font><i><font size=2>.  </font></i><font size=2>However, we expect to see a few catch-up rallies once the earnings announcement season is completed and, as long as the Tokyo market is perceived as a cyclical play within the world economy, the improved global economic outlook stemming from reduced fears of a U.S. recession, the continued European economic recovery and the sustained economic growth of the BRIC countries will provide the fundamental catalysts for these rallies.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>7</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:12;'><i><b><font size=3>The Japan Equity Fund, Inc.</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Regarding sector strategy, we will maintain our overweight positions in the machinery and automobile sectors at the expense of our underweights in both personal consumption and public utilities stocks</font><i><font size=2>.  </font></i><font size=2>Specifically within the personal consumption sector, we have increased our exposure to domestic consumption-related stocks, such as retailers, due to the possibility of a consumption recovery in Japan</font><i><font size=2>.  </font></i><font size=2>We have trimmed our holdings of those automobile stocks that generate the majority of their earnings from the U.S. market</font><i><font size=2>.  </font></i><font size=2>We believe that stock selection, rather than sector rotation, will continue to provide alpha going forward, and we intend to invest in stocks that meet the following criteria:</font></p>


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    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(i)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Positive earnings growth momentum in 2007 and 2008 &#150; with our bottom-up research activity, we believe that we can identify companies whose earnings power is not fully reflected in their stock price.</font></p> </td> </tr></table>



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    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(ii)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Potential candidates for M&amp;A or other types of reorganization &#150; these stocks tend to have attractive valuations based on either assets or earnings, as their enterprise values are not maximized for a variety of reasons.</font></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Fund Performance</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>During the six months ended April 30, 2007, the Fund&#146;s market price on the New York Stock Exchange (&#147;NYSE&#148;) ranged from a low of $7.53 per share on November 20, 2006 to a high of $9.10 on February 23, 2007</font><i><font size=2>.  </font></i><font size=2>The Fund&#146;s NYSE market price closed at $8.66 per share on April 30, 2007.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The NYSE market price in relation to the Fund&#146;s net asset value per share during the six months ended April 30, 2007, ranged from a high discount of 8.06% on February 27, 2007 to a high premium of 0.46% on April 25, 2007, and ended the period at a discount of 0.69%.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Fund has not invested in derivative securities</font><i><font size=2>.  </font></i><font size=2>Although foreign currency hedging is permitted, the Fund has not engaged in any foreign currency hedging.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Portfolio Management</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Mr. Koichi Ogawa, CFA, is the Executive Director and Chief Portfolio Manager of Daiwa SB Investments Ltd. (&#147;DSBI&#148;) for all North American clients</font><i><font size=2>.  </font></i><font size=2>A senior member of the Investment Policy Committee (IPC) of DSBI, Mr. Ogawa has 31 years of investment experience and has been responsible for Japan stock selection since 1984</font><i><font size=2>.  </font></i><font size=2>He spent nine years with Daiwa Securities as an institutional research analyst and three years in New York analyzing U.S. securities</font><i><font size=2>.  </font></i><font size=2>He graduated from Tohoku University with a B.A. in Law in 1972.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Mr. Naoto Nagai, CFA is a Senior Portfolio Manager with a total of 10 years of experience in the Japanese and global equity markets</font><i><font size=2>.  </font></i><font size=2>Prior to joining Daiwa SB Investments in 2006, he was a fund manager and research analyst at Resona Trust Company Japan</font><i><font size=2>.  </font></i><font size=2>In 1996 he earned an MBA from the University of Rochester and in 1991 he graduated from the University of Osaka Prefecture with a B.S. in Chemistry</font><i><font size=2>.  </font></i><font size=2>He assumed the day-to-day portfolio management responsibility for the Fund effective October 18, 2006.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We thank you for your support of The Japan Equity Fund, Inc. and your continued interest in the Japanese economy and marketplace.</font></p>

<p style=' margin-bottom:48pt; margin-top:0pt;text-align:justify;'><font size=2>Sincerely, </font></p>

<p style=' margin-bottom:48pt; margin-top:0pt;text-align:justify;'><img src="img2.gif"><br> </p>

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        <td width="379" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>HIROSHI KIMURA</font></B></p> </td>
        <td width="259" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>HIDEO TANAKA</font></B></p> </td> </tr>
    <tr >
        <td width="379" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>Chairman of the Board President</font></i><i></i></p> </td>
        <td width="259" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>President</font></i><i></i></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>8</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:12;'><i><b><font size=3>The Japan Equity Fund, Inc.</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><b><font size=3>Portfolio of Investments</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>April 30, 2007 (unaudited)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>COMMON STOCKS&#151;98.74%</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font size=2>&nbsp;</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Shares</font></b></u></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Value</font></b></u></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Banks&#151;9.95%</font></b></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>110,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Fukuoka Financial Group, Inc.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;837,307</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:48.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>432</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mitsubishi UFJ Financial Group, Inc.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4,516,939</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:48.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>615</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mizuho Financial Group, Inc.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3,724,467</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>140,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Bank of Yokohama, Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,034,044</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>245,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Sumitomo Trust &amp; Banking Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2,414,136</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:18.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>12,526,893</font></p> </div> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Chemicals&#151;5.56%</font></b></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>199,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Asahi Kasei Corp.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,414,889</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>160,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Daicei Chemical Industries Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,086,742</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>30,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Hitachi Chemical Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>663,739</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>150,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Nippon Paint Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>882,058</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>26,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Shin-Etsu Chemical Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,689,837</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>125,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Toyo Ink Manufacturing Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>489,335</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>240,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Ube Industries, Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>768,883</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6,995,483</font></p> </div> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Commerce&#151;0.70%</font></b></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>45,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Canon Marketing Japan Inc.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>878,921</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Communication&#151;3.56%</font></b></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.75in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>80</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>KDDI Corp.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>631,033</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:48.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>490</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>NTT Corp.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2,442,827</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:48.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>600</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>NTT DoCoMo, Inc.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,028,858</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:41.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6,400</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Obic Business Consultants Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>377,415</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4,480,133</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Construction&#151;2.06%</font></b></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>67,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Daiwa House Industry Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,058,101</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>210,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Haseko Corp.*</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>700,878</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>80,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Sumitomo Forestry Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>831,786</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2,590,765</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Electric Appliances&#151;13.92%</font></b></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>49,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Canon Inc.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2,766,625</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>16,700</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Fanuc Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,645,554</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>262,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Fujitsu Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,656,813</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>34,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Hamamatsu Photonics K.K.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>986,867</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>21,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Kyocera Corp.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2,049,937</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>108,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Matsushita Electric Industrial Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2,100,376</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>115,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mitsubishi Electric Corp.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,122,585</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>45,200</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Omron Corp.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,221,213</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>43,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Sony Corp.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2,309,159</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>27,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Star Micronics Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>657,215</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>10,500</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Tokyo Electron Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>734,254</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:48.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>110</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Wacom Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>271,435</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:18.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>17,522,033</font></p> </div> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>9</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:12;'><i><b><font size=3>The Japan Equity Fund, Inc.</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><b><font size=3>Portfolio of Investments (continued)</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>April 30, 2007 (unaudited)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>COMMON STOCKS (continued)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font size=2>&nbsp;</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Shares</font></b></u></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Value</font></b></u></p> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Electric Power &amp; Gas&#151;2.93%</font></b></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>14,500</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Kansai Electric Power Co., Inc.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;407,528</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>32,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Kyushu Electric Power Co., Inc.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>904,726</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>28,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Tohoku Electric Power Co., Inc.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>671,016</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>51,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Tokyo Electric Power Co., Inc.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,697,867</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3,681,137</font></p> </div> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Electronics&#151;0.69%</font></b></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>20,300</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Elpida Memory, Inc.*</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>865,998</font></p> </div> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Foods&#151;0.65%</font></b></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>76,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Nisshin Seifun Group Inc.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>822,618</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Glass &amp; Ceramic Products&#151;0.89%</font></b></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>63,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>NGK Spark Plug Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,119,824</font></p> </div> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Insurance&#151;2.02%</font></b></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>190,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Aioi Insurance Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,292,095</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>100,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mitsui Sumitomo Insurance Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,248,850</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2,540,945</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>28,500</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>JFE Holdings, Inc.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>380,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Nippon Steel Corp.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2,466,583</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>200,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Sumitomo Metal Industries, Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,023,839</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5,068,590</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Land Transportation&#151;3.05%</font></b></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:48.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>335</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>East Japan Railway Co.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2,726,516</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>152,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Tokyu Corp.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,112,505</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3,839,021</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Machinery&#151;7.19%</font></b></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>73,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>JTEKT Corp.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,370,849</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>95,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Komatsu Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2,276,663</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>40,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Makita Corp.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,529,067</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>545,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mitsubishi Heavy Industries Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3,382,601</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>20,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>THK Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>491,008</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9,050,188</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Marine Transportation&#151;0.81%</font></b></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>93,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Kawasaki Kisen Kaisha, Ltd..</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,017,516</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Metal Products&#151;1.20%</font></b></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>120,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>NHK Spring Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,037,892</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>17,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Rinnai Corp.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>470,682</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,508,574</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Non-Ferrous Metals&#151;1.55%</font></b></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>137,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Sumitomo Electric Industries, Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,951,577</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Oil &amp; Coal Products&#151;0.44%</font></b></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:41.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4,200</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Idemitsu Kosan Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>550,163</font></p> </div> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>10</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:12;'><i><b><font size=3>The Japan Equity Fund, Inc.</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><b><font size=3>Portfolio of Investments (continued)</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>April 30, 2007 (unaudited)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>COMMON STOCKS (continued)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font size=2>&nbsp;</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Shares</font></b></u></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Value</font></b></u></p> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Other Financing Business&#151;2.17%</font></b></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>55,500</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Hitachi Capital Corp.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;933,124</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:41.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6,700</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Orix Corp.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,801,798</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2,734,922</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Other Products&#151;0.80%</font></b></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>62,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Namco Bandai Holdings Inc.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,011,811</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Pharmaceutical&#151;3.72%</font></b></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>20,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Ono Pharmaceuticals Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,110,832</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>64,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Rohto Pharmaceutical Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>712,539</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>44,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Takeda Pharmaceutical Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2,863,404</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4,686,775</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Precision Instruments&#151;1.03%</font></b></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>32,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Terumo Corp.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,298,202</font></p> </div> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Real Estate&#151;3.30%</font></b></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>20,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Atrium Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>547,051</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>65,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mitsui Fudosan Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,913,844</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>120,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Tokyo Tatemono Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,694,354</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4,155,249</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Retail Trade&#151;3.42%</font></b></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>32,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Nishimatsuya Chain Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>578,168</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>12,800</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Nitori Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>614,571</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>70,000</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Seven &amp; I Holdings Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2,025,931</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>12,500</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Shimachu Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>340,862</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>28,500</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Xebio Co., Ltd.</font> </p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>741,405</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4,300,937</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Rubber Products &#151; 1.20%</font></b></p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>74,000</font></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Bridgestone Corp.</font> </p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,507,236</font></p> </div> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Securities &#151; 1.97%</font></b></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>128,000</font></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Nomura Holdings Inc.</font> </p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2,478,628</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Services &#151; 3.71%</font></b></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:48.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>440</font></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Dentsu Inc.</font> </p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,255,040</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>55,000</font></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Nomura Research Institute, Ltd.</font> </p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,481,389</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>19,000</font></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Secom Co., Ltd.</font> </p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>861,397</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:48.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>190</font></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Tempstaff Co., Ltd.</font> </p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>274,948</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>40,500</font></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Toho Co., Ltd.</font> </p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>797,8004</font></p> </div> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4,670,578</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Textile &amp; Apparel &#151; 1.24%</font></b></p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>226,000</font></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Toray Industries Inc.</font> </p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,561,489</font></p> </div> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><font size=3>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>11</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:12;'><i><b><font size=3>The Japan Equity Fund, Inc.</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><b><font size=3>Portfolio of Investments (continued)</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>April 30, 2007 (unaudited)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>COMMON STOCKS (continued)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font size=2>&nbsp;</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Shares</font></b></u></p> </td>
        <td width="144" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Value</font></b></u></p> </td> </tr>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Transportation Equipment &#151; 11.17%</font></b></p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>30,000</font></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Aisin Seiki Co., Ltd.</font> </p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;993,727</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>58,000</font></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Deso Corp.</font> </p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2,061,899</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>41,000</font></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Honda Motor Co., Ltd.</font> </p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,416,395</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>380,000</font></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Kawasaki Heavy Industries, Ltd.</font> </p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,528,900</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>16,000</font></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Shimano Inc.</font> </p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>527,311</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>123,000</font></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Toyota Motor Corp.</font> </p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7,531,242</font></p> </div> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:18.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>14,059,474</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Wholesale Trade &#151; 3.81%</font></b></p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>12,000</font></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Autobacs Seven Co., Ltd.</font> </p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>417,566</font></p> </div> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>35,000</font></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Hitachi High-Technologies Corp.</font> </p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>913,425</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>81,000</font></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mitsubishi Corp.</font> </p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,737,892</font></p> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>100,000</font></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Sumitomo Corp.</font> </p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,727,311</font></p> </div> </td> </tr>
    <tr >
        <td width="156" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4,796,194</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total Common Stocks</font><br> <font size=2>(Cost-$104,604,073)</font> </p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>124,271,874</font></p> </div> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>See accompanying notes to financial statements</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>12</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:12;'><i><b><font size=3>The Japan Equity Fund, Inc.</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><b><font size=3>Portfolio of Investments (concluded)</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>April 30, 2007 (unaudited)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>SHORT-TERM INVESTMENTS &#151; 0.12%</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font size=2>&nbsp;</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="156" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Principal</font></b><br> <b><font size=2>Amount</font></b><br> <b><font size=2>(000)</font></b></p> </div> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Value</font></b></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>U.S. DOLLAR TIME DEPOSIT &#151; 0.12%</font></b></p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="156" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:43.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$157</font></p> </td>
        <td width="336" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Bank of New York Time Deposit, 0.05%, due 5/1/07 (Cost-%$156,937)</font> </p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;156,937</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total Investments &#151; 98.86%</font><br> <font size=2>(Cost &#151; $104,761,010)</font> </p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>124,428,811</font></p> </td> </tr>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other assets less liabilities &#151; 1.14%</font> </p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:33.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1,432,566</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>NET ASSETS</font></B><font size=2> (Applicable to 14,431,605 shares of capital stock outstanding; equivalent to %8.72 per share) 100%</font> </p> </td>
        <td width="144" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;125,861,377</font></p> </div> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 1pt;padding-bottom:1;padding-top:0;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="24" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>*</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Non-income producing securities.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>13</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:12;'><i><b><font size=3>The Japan Equity Fund, Inc.</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><B><font SIZE=3>EQUITY CLASSIFICATION HELD</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>April 30, 2007 (unaudited)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;'><font size=2>&nbsp;</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="523" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Industry</font></b></u></p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Percent of</font></b><br> <u><b><font size=2>Net Assets</font></b></u></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Electric Appliances</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>13.92%</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Transportation Equipment</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>11.17</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Banks</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.95</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Machinery</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7.19</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Chemicals</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.56</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Iron &amp; Steel</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.03</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Wholesale Trade</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.81</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Pharmaceutical</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.72</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Services</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.71</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Communication</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.56</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Retail Trade</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.42</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Real Estate</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.30</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Land Transportation</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.05</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Electric Power &amp; Gas</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.93</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other Financing Business</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.17</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Construction</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.06</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Insurance</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.02</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Securities</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.97</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Non-Ferrous Metals</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.55</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Textile &amp; Apparel</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.24</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Rubber Products</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.20</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Metal Products</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.20</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Precision Instruments</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.03</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Glass &amp; Ceramic Products</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.89</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Marine Transportation</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.81</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other Products</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.80</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Commerce</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.70</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Electronics</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.69</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Foods</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.65</font></p> </td> </tr>
    <tr >
        <td width="523" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Oil &amp; Coal Products</font> </p> </td>
        <td width="115" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>0.44</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>14</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:12;'><i><b><font size=3>The Japan Equity Fund, Inc.</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><B><font SIZE=3>TEN LARGEST EQUITY POSITIONS HELD</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>April 30, 2007 (unaudited)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;'><font size=2>&nbsp;</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="523" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Issue</font></b></u></p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Percent of Percent of Net Assets</font></b></p> </div> </td> </tr>
    <tr >
        <td width="523" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Toyota Motor Corp.</font> </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.98%</font></p> </td> </tr>
    <tr >
        <td width="523" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mitsubishi UFJ Financial Group, Inc.</font> </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.59</font></p> </td> </tr>
    <tr >
        <td width="523" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mizuho Financial Group, Inc.</font> </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.96</font></p> </td> </tr>
    <tr >
        <td width="523" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Mitsubishi Heavy Industries Ltd.</font> </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.69</font></p> </td> </tr>
    <tr >
        <td width="523" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Takeda Pharmaceutical Co., Ltd.</font> </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.27</font></p> </td> </tr>
    <tr >
        <td width="523" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Canon Inc.</font> </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.20</font></p> </td> </tr>
    <tr >
        <td width="523" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>East Japan Railway Co.</font> </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.17</font></p> </td> </tr>
    <tr >
        <td width="523" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Nomura Holdings Inc.</font> </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.97</font></p> </td> </tr>
    <tr >
        <td width="523" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Nippon Steel Corp.</font> </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.96</font></p> </td> </tr>
    <tr >
        <td width="523" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>NTT Corp.</font> </p> </td>
        <td width="115" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.94</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>15</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:12;'><i><b><font size=3>The Japan Equity Fund, Inc.</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><b><font size=3>Statement of Assets and Liabilities</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>April 30, 2007 (unaudited)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;'><font size=2>&nbsp;</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="475" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Assets</font></b></p> </td>
        <td width="163" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="475" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Investment in securities, at value (cost&#151;$104,761,010)</font> </p> </td>
        <td width="163" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;124,428,811</font></p> </td> </tr>
    <tr >
        <td width="475" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash denominated in foreign currency (cost&#151;$866,132)</font> </p> </td>
        <td width="163" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:62.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>862,430</font></p> </td> </tr>
    <tr >
        <td width="475" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Receivable for securities sold</font> </p> </td>
        <td width="163" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:62.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>685,810</font></p> </td> </tr>
    <tr >
        <td width="475" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest and dividends receivable</font> </p> </td>
        <td width="163" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:62.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>701,518</font></p> </td> </tr>
    <tr >
        <td width="475" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Prepaid expenses and other assets</font> </p> </td>
        <td width="163" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; '>
<p style='margin-left:0pt;text-indent:66.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>50,177</font></p> </div> </td> </tr>
    <tr >
        <td width="475" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.45in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total assets</font> </p> </td>
        <td width="163" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; '>
<p style='margin-left:0pt;text-indent:44.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>126,728,746</font></p> </div> </td> </tr>
    <tr >
        <td width="475" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Liabilities</font></b></p> </td>
        <td width="163" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="475" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Payable for securities purchased</font> </p> </td>
        <td width="163" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:62.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>668,804</font></p> </td> </tr>
    <tr >
        <td width="475" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Payable for management fees</font> </p> </td>
        <td width="163" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:66.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>13,004</font></p> </td> </tr>
    <tr >
        <td width="475" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Payable for advisory fees</font> </p> </td>
        <td width="163" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:66.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>19,507</font></p> </td> </tr>
    <tr >
        <td width="475" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Payable to other affiliates</font> </p> </td>
        <td width="163" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:66.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>29,531</font></p> </td> </tr>
    <tr >
        <td width="475" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Accrued expenses and other liabilities</font> </p> </td>
        <td width="163" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; '>
<p style='margin-left:0pt;text-indent:62.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>136,523</font></p> </div> </td> </tr>
    <tr >
        <td width="475" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.45in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total liabilities</font> </p> </td>
        <td width="163" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; '>
<p style='margin-left:0pt;text-indent:62.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>867,369</font></p> </div> </td> </tr>
    <tr >
        <td width="475" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Net Assets</font></b></p> </td>
        <td width="163" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="475" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Capital stock, $0.01 par value per share; total 30,000,000 shares authorized; 14,431,605 shares issued and outstanding</font> </p> </td>
        <td width="163" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:62.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>144,317</font></p> </td> </tr>
    <tr >
        <td width="475" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Paid-in capital in excess of par value</font> </p> </td>
        <td width="163" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:44.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>125,614,429</font></p> </td> </tr>
    <tr >
        <td width="475" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Accumulated net investment loss</font> </p> </td>
        <td width="163" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:58.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(720,941)</font></p> </td> </tr>
    <tr >
        <td width="475" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Accumulated net realized loss on investments</font> </p> </td>
        <td width="163" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:45.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(18,833,531)</font></p> </td> </tr>
    <tr >
        <td width="475" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net unrealized appreciation on investments and other assets and liabilities denominated in foreign currency</font> </p> </td>
        <td width="163" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; '>
<p style='margin-left:0pt;text-indent:49.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>19,657,103</font></p> </div> </td> </tr>
    <tr >
        <td width="475" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net assets applicable to shares outstanding</font> </p> </td>
        <td width="163" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:double black 2.25pt; '>
<p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;125,861,377</font></p> </div> </td> </tr>
    <tr >
        <td width="475" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.4in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Net Asset Value Per Share</font></b> </p> </td>
        <td width="163" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:double black 2.25pt; '>
<p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>8.72</font></b></p> </div> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>See accompanying notes to financial statements</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>16</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:12;'><i><b><font size=3>The Japan Equity Fund, Inc.</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><b><font size=3>Statement of Operations</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>For the Six Months Ended April 30, 2007 (unaudited)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;'><font size=2>&nbsp;</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Investment income:</font></b></p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Dividends (net of withholding taxes of $59,942)</font> </p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$&nbsp;&nbsp;&nbsp;796,377</font></p> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest</font> </p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:54.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>45</font></p> </div> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.3in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total investment income</font> </p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>796,422</font></p> </div> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Expenses:</font></b></p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Investment management and advisory fee</font> </p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>195,617</font></p> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Administration fee and expenses</font> </p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>137,528</font></p> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Custodian fees and expenses</font> </p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:36.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>80,514</font></p> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Audit and tax services</font> </p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:36.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>42,151</font></p> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Reports and notices to shareholders</font> </p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:36.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>31,737</font></p> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Legal fees and expenses</font> </p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:36.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>24,795</font></p> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Directors&#146; fees and expenses</font> </p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:36.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>22,117</font></p> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Insurance expense</font> </p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:36.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>20,292</font></p> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Transfer agency fee and expenses</font> </p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:42.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4,433</font></p> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other</font> </p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:36.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>28,278</font></p> </div> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.3in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total expenses</font> </p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>587,462</font></p> </div> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Net investment income</font></b> </p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>208,960</font></p> </div> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Realized and unrealized gains from investment activities and foreign currency transactions:</font></b></p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net realized gains on investments</font> </p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6,167,603</font></p> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net realized foreign currency transaction losses</font> </p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:33.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(23,277)</font></p> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net change in unrealized appreciation (depreciation) on investments in equity securities</font> </p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(3,049,730)</font></p> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net change in unrealized appreciation (depreciation) on short-term investments and</font> </p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.3in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>other assets and liabilities denominated in foreign currency</font> </p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:38.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(7,386)</font></p> </div> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net realized and unrealized gains from investment activities and foreign</font></p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>currency transactions</font> </p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:24.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3,087,210</font></p> </td> </tr>
    <tr >
        <td width="502" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Net increase in net assets resulting from operations</font></b> </p> </td>
        <td width="136" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:1.0pt 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$3,296,170</font></p> </div> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>See accompanying notes to financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>17</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:12;'><i><b><font size=3>The Japan Equity Fund, Inc.</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt;text-align:left;'><b><font size=3>Statement of Changes in Net Assets</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;'><font size=2>&nbsp;</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="397" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Six Months Ended April 30, 2007 (unaudited)</font></b></p> </div> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>For the Year Ended October 31, 2006</font></b></p> </div> </td> </tr>
    <tr >
        <td width="397" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Increase (decrease) in net assets from operations:</font></b></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="397" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net investment income</font> </p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$208,960 </font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$150,842</font></p> </td> </tr>
    <tr >
        <td width="397" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net realized gain (loss) on:</font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="397" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Investments</font> </p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6,167,603</font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>11,830,566</font></p> </td> </tr>
    <tr >
        <td width="397" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Foreign currency transactions</font> </p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(23,277)</font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(12,971)</font></p> </td> </tr>
    <tr >
        <td width="397" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net change in unrealized appreciation (depreciation) on:</font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="397" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Investments in equity securities</font> </p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:10.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(3,049,730)</font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>184,658</font></p> </td> </tr>
    <tr >
        <td width="397" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Translation of short-term investments and other assets and liabilities</font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="397" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>denominated in foreign currency</font> </p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(7,386)</font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>27,895</font></p> </td> </tr>
    <tr >
        <td width="397" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net increase in net assets resulting from operations </font> </p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3,296,170</font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>12,180,990</font></p> </td> </tr>
    <tr >
        <td width="397" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Dividends and distributions to shareholders from:</font></b></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="397" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net investment income</font> </p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:10.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(1,297,949)</font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(813,340)</font></p> </td> </tr>
    <tr >
        <td width="397" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>From capital stock transactions:</font></b></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="397" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Sale of capital stock resulting from:</font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="397" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Reinvestment of dividends</font> </p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>84,221 </font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:31.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5,890</font></p> </td> </tr>
    <tr >
        <td width="397" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net increase in net assets</font> </p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2,082,442 </font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>11,373,540</font></p> </td> </tr>
    <tr >
        <td width="397" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Net assets:</font></b></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="397" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Beginning of period</font> </p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>123,778,935</font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:3.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>112,405,395</font></p> </td> </tr>
    <tr >
        <td width="397" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>End of period (including undistributed net investment income of $0 and</font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="397" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$368,048, respectively)</font> </p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$125,861,377</font></p> </td>
        <td width="121" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$123,778,935</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>See accompanying notes to financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>18</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:12;'><i><b><font size=3>The Japan Equity Fund, Inc.</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt;text-align:left;'><b><font size=3>Notes to Financial Statements</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Organization and Significant Accounting Policies</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Japan Equity Fund, Inc. (the &#147;Fund&#148;) was incorporated in Maryland on July 12, 1990 under its former name &#147;The Japan Emerging Equity Fund, Inc.&#148;  and commenced operations on July 24, 1992.  It is registered with the Securities and Exchange Commission as a closed-end, diversified management investment company.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The following significant accounting policies are in conformity with generally accepted accounting principles in the United States of America for investment companies.  Such policies are consistently followed by the Fund in the preparation of its financial statements.  The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts and disclosures in the financial statements.  Actual reporting results could differ from those estimates.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><i><font size=2>Valuation of Investments</font></i><font size=2>&#151;Securities which are listed on the Tokyo Stock Exchange or listed on the over-the-counter market in Japan or listed on other exchanges in Japan and for which market quotations are readily available are valued at the last reported sales price available to the Fund at the close of business on the day the securities are being valued or, lacking any such sales, at the last available bid price.  In instances where quotations are not readily available or where the price as determined by the above procedures is deemed not to represent fair market value, fair value will be determined in such manner as the Board of Directors (the &#147;Board&#148;) may prescribe.  Short-term investments having a maturity of 60 days or less are valued at amortized cost, except where the Board determines that such valuation does not represent the fair value
of the investment.  All other securities and assets are valued at fair value as determined in good faith by, or under the direction of, the Board.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><i><font size=2>Foreign Currency Translation</font></i><font size=2>&#151;The books and records of the Fund are maintained in U.S. dollars as follows:  (1) the foreign currency market value of investment securities and other assets and liabilities stated in Japanese yen are translated at the exchange rates prevailing at the end of the period; and (2) purchases, sales, income and expenses are translated at the rate of exchange prevailing on the respective dates of such transactions.  The resulting exchange gains and losses are included in the Statement of Operations.  The Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market price of securities.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><i><font size=2>Tax Status</font></i><font size=2>&#151;The Fund intends to continue to distribute substantially all of its taxable income and to comply with the minimum distribution and other requirements of the Internal Revenue Code applicable to regulated investment companies.  Accordingly, no provision for federal income taxes is required.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Fund is not subject to any Japanese income, capital gains or other taxes except for withholding taxes on certain income, generally imposed at rates of 7% on interest and dividends, paid to the Fund by Japanese corporations.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><i><font size=2>Investment Transactions and Investment Income</font></i><font size=2>&#151;Investment transactions are recorded on the trade date (the date upon which the order to buy or sell is executed).  Realized and unrealized gains and losses from security and foreign currency transactions are calculated on the identified cost basis.  Dividend income and corporate actions are recorded generally on the ex-date, except for certain dividends and corporate actions from Japanese securities which may be recorded after the ex-date, as soon as the Fund acquires information regarding such dividends or corporate actions.  Interest income is recorded on an accrual basis.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><i><font size=2>Dividends and Distributions to Shareholders</font></i><font size=2>&#151;The Fund records dividends and distributions payable to its shareholders on the ex-dividend date.  The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from generally accepted accounting principles.  These book basis/tax basis differences are either considered temporary or permanent in nature.  To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax basis treatment; temporary differences do not require reclassifications.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>19</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:12;'><i><b><font size=3>The Japan Equity Fund, Inc.</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt;text-align:left;'><b><font size=3>Notes to Financial Statements (continued)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Dividends and distributions which exceed net investment income and net realized capital gains for tax purposes are reported as distributions of paid-in-capital.</font></p>

<p style=' margin-bottom:6pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><i><font size=2>New Accounting Pronouncement</font></i><font size=2>&#151;In July 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes &#150; an interpretation of FASB Statement 109 (FIN 48) was issued and is effective for fiscal years beginning after December 15, 2006.  FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return.  Management is currently evaluating the impact, if any, the adoption of FIN 48 will have on the Fund&#146;s net assets and results of operations.</font></p>

<p style=' margin-bottom:6pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><b><font size=2>Investment Manager and Investment Adviser</font></b></p>

<p style=' margin-bottom:6pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Fund has an Investment Management Agreement with Daiwa SB Investments (U.S.A.)  Ltd. (the &#147;Manager&#148;).  Daiwa SB Investments Ltd. (&#147;DSBI&#148; or the &#147;Adviser&#148;), an affiliate of the Manager, acts as the Fund&#146;s investment adviser pursuant to an Investment Advisory Agreement between the Manager and DSBI.  For such investment services, the Fund is obligated to pay the Manager a monthly fee at an annual rate of 0.60% of the first $20 million, 0.40% of the next $30 million and 0.20% of the excess over $50 million of the Fund&#146;s average weekly net assets, of which fee 60% is paid by the Manager to DSBI.  In addition, the Fund has agreed to reimburse the Manager and the Adviser for all out-of-pocket expenses related to the Fund.  For the six months ended April 30, 2007, no out-of-pocket expenses were paid to the Manager or Adviser.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>At April 30, 2007, the Fund owed $32,511 to the Manager.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Administrator and Custodian and Other Related Parties</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Daiwa Securities Trust Company (&#147;DSTC&#148;), an affiliate of the Adviser, provides certain administrative services to the Fund, for which the Fund pays to DSTC a monthly fee at an annual rate of 0.20% of the first $60 million of the Fund&#146;s average weekly net assets, 0.15% of the next $40 million and 0.10% of the excess over $100 million, with a minimum annual fee of $120,000.  In addition, as permitted by the Administration Agreement, the Fund reimburses the Administrator for its out-of-pocket expenses related to the Fund.  For the six months ended April 30, 2007, expenses of $11,761 were paid or accrued to the Administrator, representing reimbursement to the Administrator of costs relating to the attendance by its employees at meetings of the Fund&#146;s Board.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The Board of Directors of the Fund has also approved the payment of the administrative compliance expense for the Fund in the amount of $46,000 per annum to DSTC, for services provided by DSTC staff in implementing the Fund&#146;s compliance management system and the Fund&#146;s compliance review program.  This amount is included in the administration fee in the Fund&#146;s Statement of Operations.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>DSTC also acts as custodian for the Fund&#146;s assets and has appointed Sumitomo Mitsui Banking Corporation (the &#147;Sub-Custodian&#148;), an affiliate of the Manager, to act as the sub-custodian for all of the cash and securities of the Fund held in Japan.  As compensation for its services as custodian, DSTC receives a monthly fee and reimbursement of out-of-pocket expenses.  Such expenses include fees and out-of-pocket expenses of the Sub-Custodian.  During the six months ended April 30, 2007, DSTC and the Sub-Custodian earned $32,682 and $47,832, respectively, as compensation for custodial service to the Fund.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>At April 30, 2007, the Fund owed $17,078, $3,833 and $5,394 to DSTC for administration, compliance and custodian fees, respectively, excluding fees and expenses of $3,989 payable to the Sub-Custodian.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>During the six months ended April 30, 2007, the Fund paid or accrued $24,795 for legal services in connection with the Fund&#146;s on-going operations to a law firm of which the Fund&#146;s Assistant Secretary is a partner.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>20</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:12;'><i><b><font size=3>The Japan Equity Fund, Inc.</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt;text-align:left;'><b><font size=3>Notes to Financial Statements (concluded)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Investments in Securities and Federal Income Tax Matters</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>For federal income tax purposes, the cost of securities owned at April 30, 2007 was $105,502,697.  At April 30, 2007, the net unrealized appreciation of investments for federal income tax purposes, excluding short-term securities, of $18,769,177 was composed of gross appreciation of $21,686,745 for those investments having an excess of value over cost, and gross depreciation of $2,917,568 for those investments having an excess of cost over value.  For the six months ended April 30, 2007, total aggregate purchases and sales of portfolio securities, excluding short-term securities, were $55,046,094 and $55,848,834, respectively.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>At October 31, 2006, the Fund had a remaining capital loss carryover of $24,963,364, of which $6,225,150 expires in the year 2009, $13,474,882 expires in the year 2010 and $5,263,332 expires in the year 2011 available to offset future net capital gains.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Capital Stock</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>There are 30,000,000 shares of $.01 par value common stock authorized.  During the six months ended April 30, 2007, 9,956 shares were issued as a result of the reinvestment of dividends paid to those shareholders electing to reinvest dividends.  Of the 14,431,605 shares of the Fund outstanding at April 30, 2007, Daiwa Securities America Inc., an affiliate of the Manager, Adviser and DSTC, owned 14,634 shares.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>21</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
<br>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:12;'><i><b><font size=3>The Japan Equity Fund, Inc.</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt;text-align:left;'><b><font size=3>Financial Highlights</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Selected data for a share of capital stock outstanding during each period is presented below:</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="248" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Six Months Ended April 30, 2007</font></b></p> </td>
        <td  colspan="5" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Years Ended October 31,</font></b></p> </div> </td> </tr>
    <tr >
        <td width="248" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>(unaudited)</font></b></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2006</font></b></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2005</font></b></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2004</font></b></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2003</font></b></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>2002</font></b></p> </div> </td> </tr>
    <tr >
        <td width="248" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net asset value, beginning of period</font> </p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;8.58</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;7.79</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;6.24</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;6.00</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;4.54</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;5.59</font></p> </div> </td> </tr>
    <tr >
        <td width="248" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net investment income (loss)</font> </p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.02</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.01</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;<sup>*</sup></font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;<sup>*</sup></font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.02)</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.04)</font></p> </td> </tr>
    <tr >
        <td width="248" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net realized and unrealized gains (losses) on</font><br> <font size=1>investments and foreign currency transactions</font> </p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.21</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.83</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.55</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.39</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.48</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(1.01)</font></p> </div> </td> </tr>
    <tr >
        <td width="248" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net increase (decrease) in net asset value</font><br> <font size=1>resulting from operations</font> </p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.23</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.84</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.55</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.39</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.46</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(1.05)</font></p> </div> </td> </tr>
    <tr >
        <td width="248" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Less: dividends and distributions to shareholders</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="248" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:.45in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net investment income</font> </p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.09)</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.05)</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td> </tr>
    <tr >
        <td width="248" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Dilutive effect of rights offering</font> </p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.12)</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td> </tr>
    <tr >
        <td width="248" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Offering costs charged to paid-in capital in excess</font><br> <font size=1>of par value</font> </p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.03)</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </div> </td> </tr>
    <tr >
        <td width="248" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net asset value, end of period</font> </p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;8.72</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;8.58</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;7.79</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;6.24</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;6.00</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;4.54</font></p> </div> </td> </tr>
    <tr >
        <td width="248" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Per share market value, end of period</font> </p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;8.66</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;8.14</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;8.51</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;6.08</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;7.16</font></p> </div> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;4.15</font></p> </div> </td> </tr>
    <tr >
        <td width="248" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total investment return:</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="248" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Based on market price at beginning and</font><br> <font size=1>end of period, assuming reinvestment of dividends<sup>&#134;</sup></font> </p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>7.52%</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(3.68)%</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>39.97%</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(11.70)%</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>72.53%</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(16.83)%</font></p> </td> </tr>
    <tr >
        <td width="248" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Based on net asset value at beginning and</font><br> <font size=1>end of period, assuming reinvestment of dividends<sup>&#134;</sup></font> </p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.71%</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>10.91%</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>24.84%</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>5.74%</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>32.16%</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(18.78)%</font></p> </td> </tr>
    <tr >
        <td width="248" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Ratios and supplemental data:</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="248" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net assets, end of period (in millions)</font> </p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$125.9</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$123.8</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$112.4</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;90.0</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;64.9</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;49.1</font></p> </td> </tr>
    <tr >
        <td width="248" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Ratios to average net assets of:</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="248" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:.45in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Expenses</font> </p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.89%<sup>**</sup></font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.94%</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.07%</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.12%</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.50%</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.44%</font></p> </td> </tr>
    <tr >
        <td width="248" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:.45in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net investment income (loss)</font> </p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.33%<sup>**</sup></font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.12%</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.07%</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.06)%</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.48)%</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.74)%</font></p> </td> </tr>
    <tr >
        <td width="248" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Portfolio turnover</font> </p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>43.83%</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>59.36%</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>72.35%</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>90.03%</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>84.00%</font></p> </td>
        <td width="65" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>76.19%</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:0;'><font size=1>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="16" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&#134;</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>For the year ended October 31, 2004, the total investment return includes the benefit of shares resulting from the exercise of rights.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="16" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>*</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>Represents less than $0.005 per share.</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="16" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>**</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>Annualized.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>22</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:12;'><i><b><font size=3>The Japan Equity Fund, Inc.</font></b></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt;text-align:left;'><b><font size=3>Results of Annual Meeting of Stockholders (unaudited)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>On June 4, 2007, the Annual Meeting of Stockholders of The Japan Equity Fund, Inc. (the &#147;Fund&#148;) was held and the following matter was voted upon and passed.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Election of two Class II Directors to the Board of Directors of the Fund, to serve for a term expiring on the date on which the Annual Meeting of Stockholders is held in the year 2010.</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="213" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="240" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Number of Shares/Votes</font></b></p> </div> </td>
        <td width="185" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="213" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Class I</font></b></p> </div> </td>
        <td width="240" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Voted For</font></b></p> </div> </td>
        <td width="185" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Proxy Authority Withheld</font></b></p> </div> </td> </tr>
    <tr >
        <td width="213" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>David G. Harmer</font></p> </td>
        <td width="240" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>11,754,328</font></p> </td>
        <td width="185" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>464,848</font></p> </td> </tr>
    <tr >
        <td width="213" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Oren G. Shaffer</font></p> </td>
        <td width="240" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>11,740,132</font></p> </td>
        <td width="185" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>479,044</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In addition to the Directors re-elected at the Meeting, Austin C. Dowling, Martin J. Gruber and Hiroshi Kimura were the other members of the Board who continued to serve as Directors of the Fund.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt;text-align:left;'><b><font size=3>An Important Notice Concerning Our Privacy Policy</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;border-top:solid 0.5pt;padding-top:1;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:6pt; text-indent:0.5in;text-align:justify;'><font size=2>This Privacy Notice describes the types of non-public information we collect about you, the ways we safeguard the confidentiality of this information and when this information may be shared with others.  In this Privacy Notice, the terms &#147;we,&#148; &#147;our&#148; and &#147;us&#148; refer to the Fund.  The term &#147;you&#148; in this Privacy Notice refers broadly to all of our individual stockholders (including prospective and former individual stockholders).</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>In order to provide you with services, we collect certain non-public information about you.  We obtain this personal information from the following sources:</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Applications and other forms you submit to us.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=4><b>&#149;</b></font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Dealings and transactions with us or others.</font></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We do not disclose any non-public personal information about you to anyone, except as permitted by law.  For instance, so that we may effect transactions that you request or authorize, we may disclose the information we collect to companies that perform services on our behalf, such as printers and mailers that assist us in the distribution of investor materials.  These companies will use this information only for the services for which we hired them, and are not permitted to use or share this information for any other purpose.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>We maintain physical, electronic and procedural security measures that comply with federal standards to safeguard your non-public personal information.  Access to such information is restricted to those agents of the Fund who are trained in the proper handling of client information and who need to know that information in order to provide services to stockholders.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>23</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

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        <td width="302" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <div style='border-top:solid black 1.0pt; padding:1.0pt 0in 0in 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>BOARD OF DIRECTORS</font></p> </div> </td>
        <td width="312" rowspan=2 valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:24.0pt'><b><font size=5>Semi-Annual Report</font></b><br> <b><font size=5>April 30, 2007</font></b></p>
<div style='border-bottom:solid black 4.5pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </div> </td> </tr>
    <tr >
        <td width="302" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Hiroshi Kimura, Chairman</font><br> <font size=2>Austin C. Dowling</font><br> <font size=2>Martin J.L Gruber</font><br> <font size=2>David G. Harmer</font><br> <font size=2>Oren G. Shaffer</font></p> </td> </tr>
    <tr >
        <td width="302" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>OFFICERS</font><br> <font size=2>Hideo Tanaka</font><br> <i><font size=2>President</font></i><br> <font size=2>John J. O&#146;Keefe</font><br> <i><font size=2>Vice President and Treasurer</font></i><br> <font size=2>Yuko Tatezawa</font><br> <i><font size=2>Secretary</font></i><br> <font size=2>Anthony Cambria</font><br> <i><font size=2>Chief Compliance Officer</font></i><br> <font size=2>Leonard B. Mackey, Jr.</font><br> <i><font size=2>Assistant Secretary</font></i><i></i></p> </div> </td>
        <td width="312" rowspan=5 style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><img src="img1.jpg"><br> </p> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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        <td width="302" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>ADDRESS OF THE FUND</font><br> <font size=2>c/o Daiwa Securities Trust Company</font><br> <font size=2>One Evertrust Plaza, 9th Floor</font><br> <font size=2>Jersey City, NJ 07302-3051</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </div> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>INVESTMENT MANAGER</font><br> <font size=2>Daiwa SB Investments (U.S.A.)  Ltd.</font><br> <font SIZE=2>INVESTMENT ADVISER</font><br> <font size=2>Daiwa SB Investments Ltd.</font><br> <font SIZE=2>ADMINISTRATOR AND CUSTODIAN</font><br> <font size=2>Daiwa Securities Trust Company</font><br> <font SIZE=2>TRANSFER AGENT AND REGISTRAR</font><br> <font size=2>American Stock Transfer &amp; Trust Company</font><br> <font SIZE=2>LEGAL COUNSEL</font><br> <font size=2>Clifford Chance US LLP</font><br> <font SIZE=2>INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</font><br> <font size=2>PricewaterhouseCoopers LLP</font></p> </div> </td> </tr>
    <tr >
        <td width="302" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940 that from time to time the Fund may purchase shares of its common stock in the open market at prevailing market prices.  This report is sent to shareholders of the Fund for their information.  It is not a prospectus, circular or representation intended for use in the purchase or sale of shares of the Fund or of any securities mentioned in the report.  The financial information included herein is taken from the records of the Fund without examination by the Independent Registered Public Accounting Firm which does not express an opinion thereon.</font></p> </td>
        <td width="312" valign=bottom style='padding:0in 5.4pt 0in 5.4pt'>
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<p style='margin-left:0pt;text-indent:111.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </div>
<p style='margin-left:.35in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><b><font size=3>The Japan Equity</font></b></i><br> <i><b><font size=3>Fund, Inc.</font></b></i></p>
<p style='margin-left:.35in;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:12.0pt'><font size=2>c/o Daiwa Securities Trust Company</font><br> <font size=2>One Evertrust Plaza</font><br> <font size=2>Jersey City, New Jersey 07302</font></p>
<p style='margin-left:.35in;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:12.0pt'><font SIZE=2>INVESTMENT MANAGER</font><br> <font size=2>Daiwa SB Investments (U.S.A.)  Ltd.</font></p>
<p
style='margin-left:.35in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>INVESTMENT ADVISER</font><br> <font size=2>Daiwa SB Investments Ltd.</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 2.  Code of Ethics.</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Not applicable for this semi-annual report.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 3.  Audit Committee Financial Expert.</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Not applicable for this semi-annual report.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 4.  Principal Accountant Fees and Services.</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Not applicable for this semi-annual report.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 5.  Audit Committee of Listed Registrants.</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Not applicable for this semi-annual report.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 6.  Schedule of Investments.</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>A Schedule of Investments is included as part of the report to shareholders filed under Item 1.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 7.  Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Not applicable for this semi-annual report.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b><font size=2>Item 8.  Portfolio Managers of Closed-End Management Investment Companies.</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Not applicable for this semi-annual report.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 9.  Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Not applicable for this semi-annual report.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 10.  Submission of Matters to a Vote of Security Holders.</font></b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant&#146;s board of directors.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 11.  Controls and Procedures.</font></b></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The registrant&#146;s principal executive and principal financial officer have concluded that the registrant&#146;s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the &#147;1940 Act&#148;) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this Form N-CSR based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17&nbsp;CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the 1934 Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>There were no changes in the registrant&#146;s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d))) that occurred during the registrant&#146;s second fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting.</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>28</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;'><b><font size=2>Item 12.  Exhibits.</font></b></p>


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        <td width="72" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Code of Ethics for Principal Executive and Senior Financial Officers.</font></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Not applicable for this semi-annual report.</font></p>


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        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Certifications required by Rule 30a-2(a) of the Investment Company Act of 1940, as amended, and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.</font></p> </td> </tr></table>



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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td width="331" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Proxy Voting Guidelines for the registrant and its adviser.</font></p> </td> </tr></table>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Not applicable for this semi-annual report. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>29</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:center;'>
<B><font SIZE=2>SIGNATURES</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>The Japan Equity Fund, Inc.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="52" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>By</font></p> </td>
        <td width="283" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>\s\ John J. O&#146;Keefe&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p> </td> </tr></table>

<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:3.56in;text-align:justify;'><font size=2>John J. O&#146;Keefe, Vice President and Treasurer</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt;text-align:justify;'><font size=2>Date:  June 19, 2007</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="52" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>By</font></p> </td>
        <td width="283" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>\s\ John J. O&#146;Keefe&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p> </td> </tr></table>

<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:3.56in;text-align:justify;'><font size=2>John J. O&#146;Keefe, Vice President and Treasurer</font></p>

<p style=' margin-bottom:24pt; margin-top:0pt;text-align:justify;'><font size=2>Date:  June 19, 2007</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="52" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>By</font></p> </td>
        <td width="281" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>\s\ Hiroshi Kimura&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p> </td> </tr></table>

<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:3.56in;text-align:justify;'><font size=2>Hiroshi Kimura, Chairman</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Date:  June 19, 2007</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>30</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:right;'>
<font size=2> EXHIBIT 12 (b)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CERTIFICATION</font></B></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>I, John J. O&#146;Keefe, certify that:</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>I have reviewed this report on Form N-CSR of The Japan Equity Fund, Inc.;</font></p> </td> </tr></table>



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        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</font></p> </td> </tr></table>



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        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;</font></p> </td> </tr></table>



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        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>4.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The registrant&#146;s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:</font></p> </td> </tr></table>



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        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</font></p> </td> </tr></table>



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        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</font></p> </td> </tr></table>



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        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and</font></p> </td> </tr></table>



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        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>31</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>5.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The registrant&#146;s other certifying officer and I have disclosed to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent functions):</font></p> </td> </tr></table>



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        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&#146;s ability to record, process, summarize, and report financial information; and</font></p> </td> </tr></table>



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        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal controls over financial reporting.</font></p> </td> </tr></table>


<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>Date:  June 19, 2007</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:justify;'><u><font size=2>\s\ John J. O&#146;Keefe&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>

<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:2.5in; text-indent:0.5in;text-align:justify;'><font size=2>John J. O&#146;Keefe, Vice President and Treasurer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>32</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'>
<B><font SIZE=2>CERTIFICATION</font></B></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>I, Hiroshi Kimura, certify that:</font></p>


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        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>I have reviewed this report on Form N-CSR of The Japan Equity Fund, Inc.;</font></p> </td> </tr></table>



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    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</font></p> </td> </tr></table>



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    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;</font></p> </td> </tr></table>



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    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>4.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The registrant&#146;s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:</font></p> </td> </tr></table>



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    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;</font></p> </td> </tr></table>



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    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(c)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="96" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(d)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and</font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>33</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>5.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The registrant&#146;s other certifying officer and I have disclosed to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent functions):</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(a)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&#146;s ability to record, process, summarize, and report financial information; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(b)</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal controls over financial reporting.</font></p> </td> </tr></table>


<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>Date:  June 19, 2007</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="621" style='border-collapse:collapse'>
    <tr >
        <td width="288" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="52" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>By</font></p> </td>
        <td width="281" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><u><font size=2>\s\ Hiroshi Kimura&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p> </td> </tr></table>

<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:3.56in;text-align:justify;'><font size=2>Hiroshi Kimura, Chairman</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>34</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'>
<B><font SIZE=2>CERTIFICATION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>PURSUANT TO SECTION 906</font></B></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>OF THE SARBANES-OXLEY ACT OF 2002</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The undersigned, the Vice President &amp; Treasurer of The Japan Equity Fund, Inc. (the &#147;Fund&#148;), with respect to the Form N-CSR for the period ended April 30, 2007 as filed with the Securities and Exchange Commission, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>such Form N-CSR fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the information contained in such Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Funds.</font></p> </td> </tr></table>


<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>Dated:  June 19, 2007</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:justify;'><u><font size=2>\s\ John J. O&#146;Keefe&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>

<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:2.5in; text-indent:0.5in;text-align:justify;'><font size=2>John J. O&#146;Keefe, Vice President and Treasurer</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>This certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>35</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>
<br>
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'>
</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>CERTIFICATION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>PURSUANT TO SECTION 906</font></B></p>

<p style=' margin-bottom:18pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>OF THE SARBANES-OXLEY ACT OF 2002</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>The undersigned, the Chairman of The Japan Equity Fund, Inc. (the &#147;Fund&#148;), with respect to the Form N-CSR for the period ended April 30, 2007 as filed with the Securities and Exchange Commission, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>such Form N-CSR fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and</font></p> </td> </tr></table>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:12.0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="48" valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
        <td  valign=top style='padding:0in 0in 12.0pt 0in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>the information contained in such Form N-CSR fairly presents, in all material respects, the financial condition and results of operations of the Funds.</font></p> </td> </tr></table>


<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:3in;text-align:justify;'><font size=2>Dated:  June 19, 2007</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3in;text-align:justify;'><u><font size=2>\s\ Hiroshi Kimura&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>

<p style=' margin-bottom:24pt; margin-top:0pt; margin-left:2.5in; text-indent:0.5in;text-align:justify;'><font size=2>Hiroshi Kimura, Chairman</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>This certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>36</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
