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<SEC-DOCUMENT>0000897204-08-000069.txt : 20080616
<SEC-HEADER>0000897204-08-000069.hdr.sgml : 20080616
<ACCEPTANCE-DATETIME>20080616104852
ACCESSION NUMBER:		0000897204-08-000069
CONFORMED SUBMISSION TYPE:	N-CSRS
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20080430
FILED AS OF DATE:		20080616
DATE AS OF CHANGE:		20080616
EFFECTIVENESS DATE:		20080616

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:		08899640

	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>jeq_ncsrs.htm
<DESCRIPTION>APRIL 30, 2008
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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>


<table border="0" cellspacing=0 cellpadding=0 width="98%" style='margin-left:0pt;border-collapse:collapse;  '>
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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>
        <td width="18%" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt'>
            <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="39%" 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>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, 2008</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: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>

<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>

<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>Item 1.  Reports 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: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:18pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:18;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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:12pt; margin-top:0pt;text-align:left;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b>General Information (unaudited)</b></p>

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

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;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>Shareholder Information</b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;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:7.69%;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 </font><i><font size=2>The New York Times</font></i><font size=2> 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>Inquiries</b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;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, 9<sup>th</sup> Floor, Jersey City, NJ 07302-3051.</font></p>

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

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;text-align:justify;'><font size=2>A description of the policies and procedures that are used by the Fund&#146;s Manager determine how 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 Manager votes these proxies is now available by calling the same number and is available on 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&nbsp;30, 2007.</font></p>

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

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;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 website 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)&nbsp;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: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:18pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:18;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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:12pt; margin-top:0pt;text-align:justify;'><b>Certifications</b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;text-align:justify;'><font size=2>The Fund&#146;s chief executive officer has certified to the NYSE that, as of June&nbsp;2, 2008, 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&nbsp;302 and Section&nbsp;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>Dividend Reinvestment and Cash Purchase Plan</b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;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 website 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>- 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:18pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:18;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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:12pt; margin-top:0pt;text-align:left;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b>Shareholder Letter (unaudited)</b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><font size=2>May&nbsp;15, 2008</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:7.69%;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&nbsp;30, 2008.</font></p>

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

<p style=' margin-bottom:3pt; margin-top:0pt; margin-left:7.69%;text-align:justify;'><font size=2>Table 1.Net Asset Value (&#147;NAV&#148;) performance in comparison to the benchmark (TOPIX), U.S. Dollar (&#147;USD&#148;)</font><i><font size=2> base</font></i></p>


<table border="0" cellspacing=0 cellpadding=0 width="98%" style='margin-left:.35pt;border-collapse:collapse'>
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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>  </td>
        <td width="17%" valign=bottom style='border-top:  solid black 1.0pt;padding: 0in 5.75pt 0in 5.75pt'>
            <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'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Latest Six Months (Nov 07  &#150; April 08) %</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="82%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=1>JEQ (NAV)</font></p> </td>
        <td width="17%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:27.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;7.95</font></p> </td> </tr>
    <tr >
        <td width="82%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Benchmark (TOPIX)</font></p> </td>
        <td width="17%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:27.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;7.57</font></p> </div> </td> </tr>
    <tr >
        <td width="82%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Underperformance</font></p> </td>
        <td width="17%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:27.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.38</font></p> </div> </td> </tr></table>

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


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            <p style='margin:0in;text-indent:0in;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="7%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Table 2.</font></p> </td>
        <td width="84%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Equity Only performance in comparison to the benchmark (TOPIX), </font><i><font size=2>Japanese Yen (&#147;JPY&#148;) base</font></i></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:7.69%; text-indent:-7.69%;text-align:justify;'>&nbsp;</p>


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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>  </td>
        <td width="17%" valign=bottom style='border-top:  solid black 1.0pt;padding: 0in 5.75pt 0in 5.75pt'>
            <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'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Latest Six Months (Nov 07  &#150; April 08)</font></b><br>  <b><font size=1>%</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="82%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>JEQ (Equity Only)</font></p> </td>
        <td width="17%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;16.03</font></p> </td> </tr>
    <tr >
        <td width="82%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Benchmark (TOPIX)</font></p> </td>
        <td width="17%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;15.26</font></p> </div> </td> </tr>
    <tr >
        <td width="82%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Underperformance</font></p> </td>
        <td width="17%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:27.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.77</font></p> </div> </td> </tr></table>

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

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b>Comment</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="7%" 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 2007 to April 2008, the NAV of the Fund decreased by 7.95% in USD terms, while the benchmark (TOPIX) fell by 7.57% in USD terms over the same period.  The Fund underperformed the benchmark by 0.38%.</font></p> </td> </tr></table>



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        <td width="7%" 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="7%" 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 Fund (excluding expenses and not accounting for cash on-hand) was &#150;16.03%, whereas the TOPIX declined by 15.26%.</font></p> </td> </tr></table>



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        <td width="7%" 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="7%" 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, the sector selection effect was &#150;1.59%, while the stock selection effect contributed +0.82% (see Table 3).  As shown in Table 4, overweight positions in the machinery, nonferrous metals and transportation equipment sectors and an underweight position in the food sector were among the primary contributors to the negative sector selection effect.  With increasing uncertainty in the global economy and financial markets, defensive sectors including foods performed relatively well, whereas cyclical names performed much poorer, as fears of a U.S. recession and turmoil in the financial markets spread.</font></p> </td> </tr></table>



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        <td width="7%" 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="7%" 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>Stock selection in the transportation equipment, retail trade and chemical sectors contributed positively, although they were partially offset by negative contributions from electrical appliances and real estate stocks.  Major positive contributors during the period were Sumitomo Trust &amp; Banking (banks) and Seven &amp; I Holdings (retail trade), while Nomura Research Institute (information &amp; communications), Makita (machinery) and Tokyo Tatemono (real estate) contributed negatively.  Among benchmark stocks, the lack of any holdings of Sumitomo Mitsui FG (banks) had a negative impact.  Sumitomo Trust rebounded sharply from mid-March, as fears of U.S. sub-prime related losses eased.  Seven &amp; I Holdings performed relatively well, as investors expected private brand developments and cost reductions to support a fiscal
year 2008 earnings </font></p> </td> </tr></table>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:15.38%;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; margin-left:15.38%;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:18pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:18;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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; margin-left:15.38%;text-align:justify;'><font size=2>rebound from the depressed fiscal year 2007 levels.  Nomura Research Institute declined after the IT service company announced lackluster results for fiscal year 2007 and a poor profit outlook for fiscal year 2008.  Makita declined amid concerns of a slowing global economy as well as negative foreign exchange movements; however, demand for its electric power tools remained healthy, particularly in emerging countries.  Tokyo Tatemono and other real estate companies were hit hard by concerns over declining condominium sales and reportedly tougher bank lending standards within the industry.</font></p>


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    <tr >
        <td width="14%" valign=top >
            <p style='margin:0in;text-indent:0in;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Table 3.</font></p> </td>
        <td width="71%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Attribution Analysis Summary, JPY base</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:7.69%; text-indent:-7.69%;text-align:justify;'>&nbsp;</p>


<table border="0" cellspacing=0 cellpadding=0 width="98%" style='margin-left:.35pt;border-collapse:collapse'>
    <tr >
        <td width="82%" valign=bottom style='border-top: solid black 1.0pt;padding:0in 5.75pt 0in 5.75pt'>
            <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="17%" valign=bottom style='border-top: solid black 1.0pt;padding:0in 5.75pt 0in 5.75pt'>
            <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'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Latest Six Months (Nov 07 &#150; April 08) %</font></b></p> </div> </td> </tr>
    <tr >
        <td width="82%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Japan Equity Fund (Equity Only)</font></p> </td>
        <td width="17%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;16.03</font></p> </td> </tr>
    <tr >
        <td width="82%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=1>TOPIX</font></p> </td>
        <td width="17%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:21.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;15.26</font></p> </div> </td> </tr>
    <tr >
        <td width="82%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Underperformance</font></p> </td>
        <td width="17%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; 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=1>&#150;0.77</font></p> </div> </td> </tr>
    <tr >
        <td width="82%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Breakdown</font></b></p> </td>
        <td width="17%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="82%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Sector Selection</font></p> </td>
        <td width="17%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;1.59</font></p> </td> </tr>
    <tr >
        <td width="82%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Stock Selection</font></p> </td>
        <td width="17%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:30.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.82</font></p> </td> </tr>
    <tr >
        <td width="82%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Others</font></p> </td>
        <td width="17%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:30.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </div> </td> </tr>
    <tr >
        <td width="82%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Total</font></b></p> </td>
        <td width="17%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; 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=1>&#150;0.77</font></p> </div> </td> </tr></table>

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


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        <td width="12%" valign=top >
            <p style='margin:0in;text-indent:0in;text-align:justify;margin-top:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>
        <td width="12%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Table 4.</font></p> </td>
        <td width="75%" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Sector &amp; Stock Selection Effects, Sector by Sector</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:7.69%; text-indent:-7.69%;text-align:justify;'>&nbsp;</p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:.35pt;border-collapse:collapse'>
    <tr >
        <td width="35%" valign=bottom style='border-top:  solid black 1.0pt;padding: 0in 5.75pt 0in 5.75pt'>
            <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="10%" valign=bottom style='border-top:  solid black 1.0pt;padding: 0in 5.75pt 0in 5.75pt'>
            <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>Portfolio Weight</font></b><br>  <b><font size=1>%</font></b></p>  </div>  </td>
        <td width="10%" valign=bottom style='border-top:  solid black 1.0pt;padding: 0in 5.75pt 0in 5.75pt'>
            <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>Market Weight</font></b><br>  <b><font size=1>%</font></b></p>  </div>  </td>
        <td width="10%" valign=bottom style='border-top:  solid black 1.0pt;padding: 0in 5.75pt 0in 5.75pt'>
            <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>Portfolio Return</font></b><br>  <b><font size=1>%</font></b></p>  </div>  </td>
        <td width="10%" valign=bottom style='border-top:  solid black 1.0pt;padding: 0in 5.75pt 0in 5.75pt'>
            <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>Benchmark Return</font></b><br>  <b><font size=1>%</font></b></p>  </div>  </td>
        <td width="10%" valign=bottom style='border-top:  solid black 1.0pt;padding: 0in 5.75pt 0in 5.75pt'>
            <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>Sector Allocation Effect</font></b><br>  <b><font size=1>%</font></b></p>  </div>  </td>
        <td width="10%" valign=bottom style='border-top:  solid black 1.0pt;padding: 0in 5.75pt 0in 5.75pt'>
            <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'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Stock Selection Effect</font></b><br>  <b><font size=1>%</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>TOPIX Industry</font></b></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Fishery, Agriculture &amp; Forestry</font>                                                                                                                                                </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.08</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;4.99</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.01</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Mining</font>                                                                                                                                                      </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.41</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;8.10</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.02</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Construction</font>                                                                                                                           </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.14</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.73</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;22.77</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;23.17</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.05</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Foods</font>                                                                                                                                                            </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.80</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3.05</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>8.79</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;6.87</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.19</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.11</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Textiles &amp; Apparel</font>                                                </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.82</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.88</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;26.11</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;21.85</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.02</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Pulp &amp; Paper</font>                                                                           </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.31</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;17.93</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Chemicals</font>                                                                                                                                        </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>7.55</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>5.56</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;19.27</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;21.55</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.14</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.20</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Pharmaceutical</font>                                                                                                                </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>4.70</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>4.18</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;16.80</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;15.28</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.01</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.07</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Oil &amp; Coal Products</font>                                             </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.75</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;32.75</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;30.58</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.03</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.03</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Rubber Products</font>                                                                                                             </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.91</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.51</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;24.61</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;27.27</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.12</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.03</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Glass &amp; Ceramics Products</font>               </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.33</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.25</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;23.03</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;27.67</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.01</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.04</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Iron &amp; Steel</font>                                                                                 </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.75</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3.17</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;21.28</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;18.03</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.12</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.09</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nonferrous Metals</font>                                                                                                 </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.52</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.27</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;25.75</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;29.24</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.19</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.08</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Metal Products</font>                                                                                                                 </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.69</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.55</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;1.84</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;17.43</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.01</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.10</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Machinery</font>                                                                                                                                     </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>7.05</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>4.42</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;21.79</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;20.89</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.26</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.04</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Electrical Appliances</font>                                                                                     </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>14.91</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>14.18</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;13.71</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;12.38</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.18</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Transport Equipment</font>                                                                                   </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>12.39</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>9.73</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;18.55</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;21.91</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.18</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.43</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Precision Instruments</font>                                                                                  </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.78</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.67</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;22.83</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.04</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.20</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Other Products</font>                                                                                                                 </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.75</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.98</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;29.18</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;16.97</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.14</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Wholesale Trade</font>                                                                                                         </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>6.73</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>4.97</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;14.20</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;15.03</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.03</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.04</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Retail Trade</font>                                                                                                                              </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3.87</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3.19</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.55</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;9.27</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.33</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Banks</font>                                                                                                                                                           </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>9.12</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>10.98</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;4.29</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;4.96</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.14</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.17</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Other Financing Business</font>                                                                   </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.81</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.32</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;17.69</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;12.54</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.06</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.09</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Securities &amp; Commodity Futures</font>                                                                                                                                                      </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.69</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.73</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;10.93</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;11.18</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Insurance</font>                                                                                                                                           </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.35</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.58</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;2.02</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;3.81</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.04</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.06</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Real Estate</font>                                                                                                                                   </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.23</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.72</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;31.57</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;24.29</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.09</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.17</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Land Transportation</font>                                                                                      </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.79</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3.43</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;11.91</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;11.85</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.02</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.01</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Marine Transportation</font>                                                                            </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.17</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.92</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;22.76</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;22.57</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.01</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.01</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Air Transportation</font>                                                                                              </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.45</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;6.32</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.03</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Warehouse &amp; Harbor Transportation</font>                                                                                                                </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;18.98</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Information &amp; Communication</font>                                                                                                             </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>4.76</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>5.22</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;17.74</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;15.09</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.00</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.14</font></p> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Electric Power &amp; Gas</font>                                       </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.35</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>4.39</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;6.95</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;9.39</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;0.07</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Services</font>                                                                                                                                                  </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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>2.20</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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>1.42</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;18.56</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;17.07</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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>&#150;0.03</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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>&#150;0.03</font></p> </div> </td> </tr>
    <tr >
        <td width="35%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total</font>                                                                                                                                                             </p> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>100.00</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>100.00</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;16.03</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:8.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#150;15.26</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; 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>&#150;1.59</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; 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>0.82</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: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: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:18pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:18;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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:12pt; margin-top:0pt;text-align:justify;'><b>Market Review (November 2007 &#150; April 2008)</b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;text-align:justify;'><font size=2>The Tokyo market continued to struggle towards the end of 2007 and through the early part of 2008, as worsening U.S. sub-prime related issues, fears of a U.S. recession and its potential negative impact on the global economy, the JPY&#146;s appreciation against the USD, and a deteriorating domestic political situation were all digested by the market.  On March&nbsp;17, 2008, the TOPIX fell below the 1,150 level, its lowest point in more than two and a half years.  On the heels of this steep decline, the market rebounded sharply following a series of unprecedented steps undertaken to ease the tension in the financial markets, including the near bail out of U.S. brokerage firm, Bear Stearns, aggressive liquidity injections by the Federal Reserve Bank and announcements of capital raising measures by several U.S. and European financial institutions.  Better than expected U.S. macro-economic
data and the USD&#146;s appreciation versus the JPY also helped lift the stock market higher.  One encouraging development has been the market&#146;s resiliency in the face of negative earnings guidance and estimates.  Most likely, the market has considerably discounted a cautious profit outlook for the year ending March 2009, and an appetite for risk is gradually returning to the market.</font></p>

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

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;text-align:justify;'><font size=2>After a rebound of nearly 20% from the March lows, the Fund&#146;s Investment Manager expects the market to consolidate going forward, looking for clues as to the direction of external economies, particularly that of the United States.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="7%" 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'><i><font size=2>Extreme undervaluation corrected</font></i></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:7.69%;text-align:justify;'><font size=2>The negative yield spread (10-year Japanese Government Bond (&#147;JGB&#148;) yield minus equity dividend yield) has corrected and is currently flat, as the 10-year JGB yield shot up to between 1.6% and 1.7%, equaling the current dividend yield level.  This is a possible indication that financial market valuations have normalized, and could signal the end of the recent financial stress in the markets.  The average price-earnings (&#147;P/E&#148;) of the Tokyo market has risen to 17 times earnings due to the market rebound together with downward revisions to earnings estimates, making stocks reasonable, but not particularly attractive, from a valuation standpoint.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="7%" 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'><i><font size=2>Negative profit guidance, possibly suggesting upward earnings revisions</font></i></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:7.69%;text-align:justify;'><font size=2>A number of major companies, including those in the technology, auto and steel sectors, have issued negative profit guidance for the year ending March 2009.  As 40% of listed companies close their books at March end, the aggregate recurring profits of these 629 companies (excluding financials) increased by 1.8% in the year ended March 2008 and, according to Nikkei, are estimated by management to fall 6.5% in the year ending March 2009.  Manufacturers predict a 12% decline in recurring profits, led by auto and steel companies, while non-manufacturers, led by trading firms, forecast growth of around 5%.  The Fund&#146;s Investment Manager suspects that business considerations may have influenced some of the negative profit guidance in the steel and auto sectors, as they will each have to negotiate steel price increases in order to share the burden of iron ore and coal price hikes.
Negative profit guidance, particularly for the six months ending September 2008, seems to have taken into account a JPY/USD exchange rate of 100 and a JPY/Euro rate of 155, as well as a U.S. economic recession and the resilience of emerging economies.  Therefore, the Fund&#146;s Investment Manager believes that the profit outlook is more likely to be revised upward, as has been the case over the last several years, based on the potential stabilization of the U.S. economy and strengthening USD as the year progresses.  This likely upward revision will provide a significant catalyst for a sustainable rally in the Tokyo market on the heels of its recent rebound.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="7%" 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'><i><font size=2>Rising inflation</font></i></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:7.69%;text-align:justify;'><font size=2>Core Consumer Price Index (&#147;CPI&#148;) (which, in Japan, excludes fresh foods but includes energy prices) rose 1.2% year-on-year in March, reflecting price increases in energy and food on a global scale.  Due to minimal wage increases and zero unit labor cost hikes, Japan&#146;s problem is now slow economic growth rather than inflation.  Energy and food inflation will cut into disposable income, while corporate profit </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:7.69%;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; margin-left:7.69%;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:18pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:18;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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; margin-left:7.69%;text-align:justify;'><font size=2>outlooks will continue to restrict wage hikes.  Consumers cannot get relief from government tax cuts, due to the huge amount of government debt.  Merchandise suppliers, who remain hung up on disinflation due to their experiences in the 1990s and 2000s, remain worried about losing customers after raising prices.  Energy and food inflation alone cannot justify interest rate hikes by the Bank of Japan, which has downgraded its economic growth forecast from 2.1% to 1.5% for the year ending March 2009.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="7%" 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'><i><font size=2>Peaking political discounts</font></i></p> </td> </tr></table>


<p style=' margin-bottom:12pt; margin-top:0pt; margin-left:7.69%;text-align:justify;'><font size=2>According to several polls, the Fukuda cabinet&#146;s approval rating fell below 20% due to its weak political leadership in handling the road construction purpose gasoline surtax, which was eliminated in April and then reinstated in May, as well as its implementation of a new medical insurance scheme for people over 75&nbsp;years old.  It is evident that the government, which consists mainly of bureaucrats and politicians, has been a drag on private economic activity for the last couple of years and, in light of low expectations for the current government, any changes should be considered to be for the better.  Prime Minister Fukuda&#146;s declining approval rating could be a catalyst for a political reshuffling or, at least, some minor changes.  Politics will likely remain a neutral factor for the Japanese market, barring any reshuffling, which would be interpreted as a positive.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;text-align:justify;'><font size=2>Regarding sector strategy, the Fund&#146;s portfolio will remain overweight in the machinery and automobile sectors and underweight in public utilities and service stocks.  Although the Fund&#146;s portfolio remains underweight in financials, we have reduced the degree to which the Fund&#146;s portfolio was underweight and added positions in major banks.  The Fund&#146;s portfolio will continue to overweight the beneficiaries of infrastructure developments in the emerging markets and ecology/alternative energy investments on a global basis.</font></p>

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

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;text-align:justify;'><font size=2>During the six months ended April&nbsp;30, 2008, the Fund&#146;s market price on the New York Stock Exchange (&#147;NYSE&#148;) ranged from a low of $6.16 per share on January&nbsp;22, 2008 to a high of $8.00 on December&nbsp;12, 2007.  The Fund&#146;s NYSE market price closed at $7.40 per share on April&nbsp;30, 2008.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;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&nbsp;30, 2008 ranged from a high discount of 10.57% on April&nbsp;11, 2008 to a low discount of 2.49% on February&nbsp;12, 2008, and ended the period at a discount of 6.92%.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;text-align:justify;'><font size=2>The Fund has not invested in derivative securities.  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>Portfolio Management</b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;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.  A senior member of the Investment Policy Committee (IPC) of DSBI, Mr. Ogawa has 32&nbsp;years of investment experience and has been responsible for Japan stock selection since 1984.  He spent nine years with Daiwa Securities as an institutional research analyst and three years in New York analyzing U.S. securities.  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:7.69%;text-align:justify;'><font size=2>Mr. Naoto Nagai, CFA, is a Senior Portfolio Manager with a total of 11&nbsp;years of experience in the Japanese and global equity markets.  Prior to joining Daiwa SB Investments in 2006, he was a fund manager and research analyst at Resona Trust Company Japan.  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.  He assumed the day-to-day portfolio management responsibilities for the Fund, effective October&nbsp;18, 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>- 6 -</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:18pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:18;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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:12pt; margin-top:0pt; text-indent:7.69%;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:0pt; margin-top:0pt;text-align:justify;'><font size=2>Sincerely,</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="319" 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'><img src="img1.jpg"><br> </p> </td>
        <td width="319" 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'><img src="img2.jpg"><br> </p> </td> </tr>
    <tr >
        <td width="319" 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>YOSHIHIRO FUJISAWA</font></B></p> </td>
        <td width="319" 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="319" 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</font></i><i></i></p> </td>
        <td width="319" 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: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>- 7 -</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:18pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:18;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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:left;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b>Portfolio of Investments</b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b>April</b>&nbsp;<b>30, 2008 (unaudited)</b></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:6;padding-top:0;'><b><font size=2>COMMON STOCKS&#151;98.42%</font></b></p>


<table border="0" cellspacing=0 cellpadding=0 width="47%" style='border-collapse:collapse'>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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=1>Shares</font></b></p>  </div>  </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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>Value</font></b></p>  </div>  </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Apparel&#151;0.60%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>68,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Asics Corp</font>                                                   </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;684,963</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Banks&#151;11.91%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>526,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Mitsubishi UFJ Financial Group, Inc</font>                                                                        </p> </td>
        <td width="23%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>5,778,222</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:33.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>832</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Mizuho Financial Group, Inc</font>                                      </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>4,314,192</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:33.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>170</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Seven Bank, Ltd.</font>                      </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>306,895</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>172,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>The Bank of Yokohama, Ltd.</font>           </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,258,537</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,300</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>The Musashino Bank, Ltd</font>                                                                       </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>99,827</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>211,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>The Sumitomo Trust &amp; Banking Co., Ltd.</font>     </p> </td>
        <td width="23%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,894,421</font></p> </div> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>13,652,094</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Chemicals&#151;7.62%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>199,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Asahi Kasei Corp</font>                     </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,125,514</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>127,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Daicei Chemical Industries Ltd</font>                        </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>748,781</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>37,100</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Fujifilm Holdings Corp.</font>                                                             </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,421,442</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>29,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nihon Parkerizing Co., Ltd</font>                                                 </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>461,148</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>44,600</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Shin-Etsu Chemical Co., Ltd</font>                                                 </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,749,491</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>88,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Sumitomo Chemical Co., Ltd</font>                                                 </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>570,386</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>4,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Taiyo Nippon Sanso Corp.</font>                                                             </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>32,495</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>93,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Toyo Ink Manufacturing Co., Ltd</font>                                                 </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>335,779</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>370,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Ube Industries, Ltd.</font>           </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,293,259</font></p> </div> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>8,738,295</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Commerce&#151;0.31%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>18,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Canon Marketing Japan Inc</font>                                           </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>349,145</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Communication&#151;2.80%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:33.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>128</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>KDDI Corp</font>                                               </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;818,590</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:33.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>337</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>NTT Corp</font>                                                   </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,449,741</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:33.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>520</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>NTT DoCoMo, Inc</font>          </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>763,972</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3,400</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Obic Business Consultants Co., Ltd</font>                                                                       </p> </td>
        <td width="23%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>174,995</font></p> </div> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3,207,298</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Construction&#151;0.99%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>51,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Daiwa House Industry Co., Ltd</font>                                                 </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>573,468</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>80,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Sumitomo Forestry Co., Ltd</font>                                                 </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>566,161</font></p> </div> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,139,629</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Electric Appliances&#151;14.66%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>57,600</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Canon Inc</font>                                                     </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,876,128</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>17,900</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Fanuc Ltd</font>                                                       </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,878,692</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>136,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Fujitsu Ltd</font>                                                    </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>865,834</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>34,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Hamamatsu Photonics K.K</font>                  </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,034,953</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>5,500</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Kyocera Corp</font>                                    </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>504,897</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>88,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Matsushita Electric Industrial Co., Ltd</font>   </p> </td>
        <td width="23%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,066,065</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>220,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Mitsubishi Electric Corp</font>                                                                </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,243,518</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>20,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Omron Corp</font>                                          </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>414,826</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>43,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Sony Corp</font>                                                    </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,973,689</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>20,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Star Micronics Co., Ltd</font>                                                                       </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>339,927</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>18,700</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Tokyo Electron Ltd</font>       </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,212,070</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>23,500</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Ushio Inc</font>                                                        </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>444,095</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>33,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Yamatake Corp</font>                            </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>956,981</font></p> </div> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>16,811,675</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Electric Power &amp; Gas&#151;1.69%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>36,500</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Kansai Electric Power Co., Inc</font>                                                  </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>867,462</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>47,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Tohoku Electric Power Co., Inc</font>                  </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,065,105</font></p> </div> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,932,567</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Foods&#151;1.18%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>88,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Meiji Dairies Corp</font>                </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;538,275</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>- 8 -</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:18pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:18;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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>


<table border="0" cellspacing=0 cellpadding=0 width="47%" style='border-collapse:collapse'>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>76,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nisshin Seifun Group Inc</font>                                                                      </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>812,983</font></p> </div> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,351,258</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Glass &amp; Ceramic Products&#151;1.22%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>118,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Asahi Glass Co., Ltd</font>      </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,403,899</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=1>Insurance&#151;2.64%</font></b></p> </td>
        <td width="23%" 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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>218,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Aioi Insurance Co., Ltd</font>                                                                     </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,371,135</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>41,700</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Mitsui Sumitomo Insurance Group Holdings, Inc</font>                        </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,657,749</font></p> </div> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3,028,884</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Iron &amp; Steel&#151;2.19%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>179,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nippon Steel Corp</font>             </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,003,803</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>360,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Sumitomo Metal Industries, Ltd</font>                   </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,510,659</font></p> </div> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,514,462</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Land Transportation&#151;2.60%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:33.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>374</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>East Japan Railway Co</font>                                                                        </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,977,204</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Machinery&#151;6.98%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>54,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Daifuku Co., Ltd</font>                      </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>673,574</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>35,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>JTEKT Corp</font>                                      </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>618,398</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>67,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Komatsu Ltd</font>                                       </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,033,032</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>49,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Makita Corp</font>                                        </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,684,463</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>349,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Mitsubishi Heavy Industries, Ltd</font>                   </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,615,306</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>80,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Ricoh Co., Ltd</font>                               </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,377,377</font></p> </div> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>8,002,150</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Marine Transportation&#151;1.24%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>58,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Kawasaki Kisen Kaisha, Ltd</font>                                </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>588,131</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>86,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nippon Yusen Kabushiki Kaisha</font>      </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>834,070</font></p> </div> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,422,201</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Metal Products&#151;0.77%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>51,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>JS Group Corp</font>                                 </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;881,995</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Non-Ferrous Metals&#151;2.58%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>121,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Mitsubishi Materials Corp</font>                                                              </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>572,815</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>90,500</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Sumitomo Electric Industries, Ltd</font>                   </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,162,752</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>67,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Sumitomo Metal Mining Co., Ltd</font>           </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,216,603</font></p> </div> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,952,170</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Oil &amp; Coal Products&#151;0.79%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>10,700</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Idemitsu Kosan Co., Ltd</font>                                                                     </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>910,332</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Other Financing Business&#151;0.52%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3,300</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Orix Corp</font>                                                    </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>594,469</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Other Products&#151;0.16%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>15,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Namco Bandai Holdings Inc</font>                           </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>187,536</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Pharmaceutical&#151;4.11%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>30,800</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Daiichi Sankyo Co., Ltd</font>                                                                     </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>845,861</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>14,500</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Ono Pharmaceuticals Co., Ltd</font>                                               </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>765,796</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>74,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Rohto Pharmaceutical Co., Ltd</font>                                               </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>789,457</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>43,900</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Takeda Pharmaceutical Co., Ltd</font>                                               </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,314,298</font></p> </div> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>4,715,412</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Precision Instruments&#151;0.60%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>25,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Hoya Corp</font>                                                </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>691,377</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Real Estate&#151;1.98%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>31,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Mitsui Fudosan Co., Ltd</font>                                                                     </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>779,912</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>171,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Tokyo Tatemono Co., Ltd</font>                                               </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,487,670</font></p> </div> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,267,582</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Retail Trade&#151;4.60%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>7,500</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>FamilyMart Co., Ltd</font>   </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;261,427</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>17,900</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nitori Co., Ltd</font>                              </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>941,924</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>73,500</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Seven &amp; I Holdings Co., Ltd</font>    </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,180,862</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>28,800</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Shimachu Co., Ltd</font>              </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>790,935</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>36,500</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Xebio Co., Ltd</font>                               </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,097,033</font></p> </div> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>5,272,181</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Rubber Products&#151;0.41%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>26,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Bridgestone Corp</font>                   </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>474,112</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Securities&#151;1.93%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>127,500</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nomura Holdings Inc</font>                                                                                     </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2,213,559</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: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: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:18pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:18;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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>


<table border="0" cellspacing=0 cellpadding=0 width="47%" style='border-collapse:collapse'>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Services&#151;3.44%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:33.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>470</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Dentsu Inc</font>                                                                                                 </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,078,644</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>37,900</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nomura Research Institute, Ltd</font>  </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>835,227</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>20,500</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Secom Co., Ltd</font>                                                                            </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>952,756</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:33.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>268</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Tempstaff Co., Ltd</font>                                                         </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>293,374</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>34,500</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Toho Co., Ltd</font>                                                                                </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>788,458</font></p> </div> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3,948,459</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Textile &amp; Apparel&#151;0.49%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>91,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Toray Industries Inc</font>                                                     </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>566,238</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Transportation Equipment&#151;10.71%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>26,500</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Aisin Seiki Co., Ltd</font>                                                         </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>923,708</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>90,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Daihatsu Motor Co., Ltd</font>                                 </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,073,363</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>58,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Denso Corp</font>                                                                                            </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,960,438</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>380,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Kawasaki Heavy Industries, Ltd</font>  </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>977,914</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>114,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nissan Motor Co., Ltd</font>                                           </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,009,295</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>25,400</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Shimano Inc</font>                                                                                         </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,153,659</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>102,500</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Toyota Motor Corp</font>                                                     </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>5,187,008</font></p> </div> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>12,285,385</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Wholesale Trade&#151;6.70%</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>49,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Hitachi High-Technologies Corp</font>                                                                                                                                     </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;971,625</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>132,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Marubeni Corp</font>                                                                              </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,050,778</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>121,000</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Mitsubishi Corp</font>                                                                          </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3,880,738</font></p> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>132,300</font></p> </td>
        <td width="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Sumitomo Corp</font>                                                                          </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,774,756</font></p> </div> </td> </tr>
    <tr >
        <td width="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>7,677,897</font></p> </div> </td> </tr>
    <tr >
        <td  colspan="2" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Total Common Stocks</font></b></p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="22%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <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="53%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(Cost&#151;$106,733,506)</font>                                                                                                                                                   </p> </td>
        <td width="23%" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>112,854,428</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:6pt; margin-top:0pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:6;padding-top:0;'><b><font size=2>SHORT-TERM INVESTMENTS&#151;0.07%</font></b></p>


<table border="0" cellspacing=0 cellpadding=0 width="47%" style='border-collapse:collapse'>
    <tr >
        <td width="75%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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=1>Principal Amount (000)</font></b></p>  </div>  </td>
        <td width="24%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="75%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>U.S. DOLLAR TIME DEPOSIT&#151;0.07%</font></b></p> </td>
        <td width="24%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="75%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$81&nbsp;&nbsp;Bank of New York Time Deposit, 0.05%, due 5/1/08 (Cost&#151;$81,049)</font>                                                               </p> </td>
        <td width="24%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>81,049</font></p> </div> </td> </tr>
    <tr >
        <td width="75%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total Investments&#151;98.49% (Cost&#151;$106,814,555)</font>                                              </p> </td>
        <td width="24%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>112,935,477</font></p> </td> </tr>
    <tr >
        <td width="75%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Other assets less liabilities&#151;1.51%</font>      </p> </td>
        <td width="24%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,731,916</font></p> </div> </td> </tr>
    <tr >
        <td width="75%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=1>NET ASSETS</font></B><font size=1> (Applicable to 14,431,605 shares of capital stock outstanding; equivalent to $7.95 per share)&#151;100.00%</font>                                                                       </p> </td>
        <td width="24%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$114,667,393</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-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>- 10 -</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:18pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:18;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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:left;border-bottom:solid 0.5pt;padding-bottom:6;padding-top:0;'><B><font SIZE=2>EQUITY CLASSIFICATIONS HELD</font></B></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:left;border-bottom:solid 0.5pt;padding-bottom:6;padding-top:0;'><b><font size=2>April</font></b><font size=2>&nbsp;</font><b><font size=2>30, 2008 (unaudited)</font></b></p>


<table border="0" cellspacing=0 cellpadding=0 width="47%" style='border-collapse:collapse'>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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=1>Industry</font></b></p>  </div>  </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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>Percent of Net Assets</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Electric Appliances</font>                                                                                                      </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>14.66%</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Banks</font>                                                                                                                                                                    </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>11.91</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Transportation Equipment</font>                                                                    </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>10.71</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Chemicals</font>                                                                                                                                                 </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>7.62</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Machinery</font>                                                                                                                                              </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>6.98</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Wholesale Trade</font>                                                                                                                  </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>6.70</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Retail Trade</font>                                                                                                                                       </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>4.60</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Pharmaceutical</font>                                                                                                                         </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>4.11</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Services</font>                                                                                                                                                           </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3.44</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Communication</font>                                                                                                                      </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.80</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Insurance</font>                                                                                                                                                    </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.64</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Land Transportation</font>                                                                                               </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.60</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Non-Ferrous Metals</font>                                                                                                    </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.58</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Iron &amp; Steel</font>                                                                                          </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.19</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Real Estate</font>                                                                                                                                            </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.98</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Securities</font>                                                                                                                                                     </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.93</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Electric Power &amp; Gas</font>                                                </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.69</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Marine Transportation</font>                                                                                     </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.24</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Glass &amp; Ceramic Products</font>                            </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.22</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Foods</font>                                                                                                                                                                     </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.18</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Construction</font>                                                                                                                                    </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.99</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Oil &amp; Coal Products</font>                                                      </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.79</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Metal Products</font>                                                                                                                          </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.77</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Precision Instruments</font>                                                                                           </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.60</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Apparel</font>                                                                                                                                                           </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.60</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Other Financing Business</font>                                                                            </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.52</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Textile &amp; Apparel</font>                                                             </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.49</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Rubber Products</font>                                                                                                                      </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.41</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Commerce</font>                                                                                                                                              </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.31</font></p> </td> </tr>
    <tr >
        <td width="68%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Other Products</font>                                                                                                                          </p> </td>
        <td width="31%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.16</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:left;border-bottom:solid 0.5pt;padding-bottom:6;padding-top:0;'><B><font SIZE=2>TEN LARGEST EQUITY POSITIONS HELD</font></B></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:left;border-bottom:solid 0.5pt;padding-bottom:6;padding-top:0;'><b><font size=2>April</font></b><font size=2>&nbsp;</font><b><font size=2>30, 2008 (unaudited)</font></b></p>


<table border="0" cellspacing=0 cellpadding=0 width="47%" style='border-collapse:collapse'>
    <tr >
        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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=1>Issue</font></b></p>  </div>  </td>
        <td width="32%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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>Percent of Net Assets</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Mitsubishi UFJ Financial Group, Inc</font>                         </p> </td>
        <td width="32%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>5.04%</font></p> </td> </tr>
    <tr >
        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Toyota Motor Corp</font>                                                                                                </p> </td>
        <td width="32%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>4.52</font></p> </td> </tr>
    <tr >
        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Mizuho Financial Group, Inc</font>                                                          </p> </td>
        <td width="32%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3.76</font></p> </td> </tr>
    <tr >
        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Mitsubishi Corp</font>                                                                                                                     </p> </td>
        <td width="32%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>3.38</font></p> </td> </tr>
    <tr >
        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>East Japan Railway Co</font>                                                                                      </p> </td>
        <td width="32%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.60</font></p> </td> </tr>
    <tr >
        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Canon Inc</font>                                                                                                                                              </p> </td>
        <td width="32%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.51</font></p> </td> </tr>
    <tr >
        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Shin-Etsu Chemical Co., Ltd</font>                                                           </p> </td>
        <td width="32%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.40</font></p> </td> </tr>
    <tr >
        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Takeda Pharmaceutical Co., Ltd</font>                                         </p> </td>
        <td width="32%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>2.02</font></p> </td> </tr>
    <tr >
        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Mitsubishi Electric Corp</font>                                                                              </p> </td>
        <td width="32%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.96</font></p> </td> </tr>
    <tr >
        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Nomura Holdings Inc</font>                                                                                            </p> </td>
        <td width="32%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:26.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.93</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>- 11 -</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:18pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:18;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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:left;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b>Statement of Assets and Liabilities</b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b>April</b>&nbsp;<b>30, 2008 (unaudited)</b></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="80%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font color="#FF0000"><b><font size=1>Assets</font></b></font></p> </td>
        <td width="19%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="80%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Investment in securities, at value (cost&#151;$106,814,555)</font>                                                                                             </p> </td>
        <td width="19%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;112,935,477</font></p> </td> </tr>
    <tr >
        <td width="80%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Cash denominated in foreign currency (cost&#151;$985,674)</font>                                                                                           </p> </td>
        <td width="19%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>982,353</font></p> </td> </tr>
    <tr >
        <td width="80%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Receivable for securities sold</font>                                                                                                                                                                                                                                                                           </p> </td>
        <td width="19%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>710,950</font></p> </td> </tr>
    <tr >
        <td width="80%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Interest and dividends receivable</font>                                                                                                                                                                                                                                                          </p> </td>
        <td width="19%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>821,410</font></p> </td> </tr>
    <tr >
        <td width="80%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Prepaid expenses</font>                                                                                                                                                                                                                                                                                                                                </p> </td>
        <td width="19%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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=1>20,954</font></p> </div> </td> </tr>
    <tr >
        <td width="80%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.3in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total assets</font>                                                                                                                                                                                                                                                                                                                                         </p> </td>
        <td width="19%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>115,471,144</font></p> </div> </td> </tr>
    <tr >
        <td width="80%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font color="#FF0000"><b><font size=1>Liabilities</font></b></font></p> </td>
        <td width="19%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="80%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Payable for securities purchased</font>                                                                                                                                                                                                                                                             </p> </td>
        <td width="19%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>645,127</font></p> </td> </tr>
    <tr >
        <td width="80%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Payable for management fees</font>                                                                                                                                                                                                                                                                       </p> </td>
        <td width="19%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>11,828</font></p> </td> </tr>
    <tr >
        <td width="80%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Payable for advisory fees</font>                                                                                                                                                                                                                                                                                           </p> </td>
        <td width="19%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>17,741</font></p> </td> </tr>
    <tr >
        <td width="80%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Payable for other affiliates</font>                                                                                                                                                                                                                                                                                   </p> </td>
        <td width="19%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>26,712</font></p> </td> </tr>
    <tr >
        <td width="80%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Accrued expenses and other liabilities</font>                                                                                                                                                                                                                                   </p> </td>
        <td width="19%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>102,343</font></p> </div> </td> </tr>
    <tr >
        <td width="80%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.3in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total liabilities</font>                                                                                                                                                                                                                                                                                                                          </p> </td>
        <td width="19%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>803,751</font></p> </div> </td> </tr>
    <tr >
        <td width="80%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font color="#FF0000"><b><font size=1>Net Assets</font></b></font>                                                                                                                                                                                                                                                                                                                                  </p> </td>
        <td width="19%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;114,667,393</font></p> </div> </td> </tr>
    <tr >
        <td width="80%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font color="#FF0000"><b><font size=1>Net Assets consist of:</font></b></font></p> </td>
        <td width="19%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="80%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>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="19%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>144,317</font></p> </td> </tr>
    <tr >
        <td width="80%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Paid-in capital in excess of par value</font>                                                                                                                                                                                                                                      </p> </td>
        <td width="19%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>125,321,410</font></p> </td> </tr>
    <tr >
        <td width="80%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Accumulated net investment income</font>                                                                                                                                                                                                                                      </p> </td>
        <td width="19%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>36,880</font></p> </td> </tr>
    <tr >
        <td width="80%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Accumulated net realized loss on investments</font>                                                                                                                                                                                              </p> </td>
        <td width="19%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(16,915,553)</font></p> </td> </tr>
    <tr >
        <td width="80%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net unrealized appreciation on investments and other assets and liabilities denominated in foreign currency</font>                                                                                                                                                                                                                                          </p> </td>
        <td width="19%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:21.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>6,080,339</font></p> </td> </tr>
    <tr >
        <td width="80%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.3in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net assets applicable to shares outstanding</font>                                                                                                                                                                                             </p> </td>
        <td width="19%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;114,667,393</font></p> </div> </td> </tr>
    <tr >
        <td width="80%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.45in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=1>Net Asset Value Per Share</font></b>                                                                                                                                                                                                                                                          </p> </td>
        <td width="19%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; 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=1>$</font></b><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=1>7.95</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>&nbsp;</font></p>

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

<p style=' margin-bottom:12pt; 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: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:18pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:18;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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:left;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b>Statement of Operations</b></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b>For the Six Months Ended April</b>&nbsp;<b>30, 2008 (unaudited)</b></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:.35pt;border-collapse:collapse'>
    <tr >
        <td width="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font color="#FF0000"><b><font size=1>Investment income:</font></b></font></p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Dividends (net of withholding taxes of $79,030)</font>                                                                                                                                                                                                                           </p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,051,566</font></p> </td> </tr>
    <tr >
        <td width="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Interest</font>                                                                                                                                                                                                                                                                                                                                                                                                                      </p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:45.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>37</font></p> </div> </td> </tr>
    <tr >
        <td width="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.3in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total investment income</font>                                                                                                                                                                                                                                                                                                                     </p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:21.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,051,603</font></p> </div> </td> </tr>
    <tr >
        <td width="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font color="#FF0000"><b><font size=1>Expenses:</font></b></font></p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Investment management and advisory fee and expenses</font>                                                                                                                                                                                          </p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>189,280</font></p> </td> </tr>
    <tr >
        <td width="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Administration fee and expenses</font>                                                                                                                                                                                                                                                                                                    </p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>144,668</font></p> </td> </tr>
    <tr >
        <td width="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Custodian fees and expenses</font>                                                                                                                                                                                                                                                                                                                         </p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>95,152</font></p> </td> </tr>
    <tr >
        <td width="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Directors&#146; fees and expenses</font>                                                                                                                                                                                                                                                                 </p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>43,261</font></p> </td> </tr>
    <tr >
        <td width="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Audit and tax services</font>                                                                                                                                                                                                                                                                                                                                                     </p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>42,466</font></p> </td> </tr>
    <tr >
        <td width="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Reports and notices to shareholders</font>                                                                                                                                                                                                                                                                                      </p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>28,345</font></p> </td> </tr>
    <tr >
        <td width="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Legal fees and expenses</font>                                                                                                                                                                                                                                                                                                                                             </p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>19,891</font></p> </td> </tr>
    <tr >
        <td width="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Insurance expense</font>                                                                                                                                                                                                                                                                                                                                                                      </p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:32.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>14,259</font></p> </td> </tr>
    <tr >
        <td width="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Transfer agency fee and expenses</font>                                                                                                                                                                                                                                                                                               </p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:.5in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>5,538</font></p> </td> </tr>
    <tr >
        <td width="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Other</font>                                                                                                                                                                                                                                                                                                                                                                                                                               </p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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=1>33,676</font></p> </div> </td> </tr>
    <tr >
        <td width="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.3in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Total expenses</font>                                                                                                                                                                                                                                                                                                                                                                     </p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>616,536</font></p> </div> </td> </tr>
    <tr >
        <td width="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font color="#FF0000"><b><font size=1>Net investment income</font></b></font>                                                                                                                                                                                                                                                                                                                 </p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>435,067</font></p> </div> </td> </tr>
    <tr >
        <td width="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font color="#FF0000"><b><font size=1>Realized and unrealized gains from investment activities and foreign currency transactions:</font></b></font></p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net realized gains on investments</font>                                                                                                                                                                                                                                                                                               </p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>884,314</font></p> </td> </tr>
    <tr >
        <td width="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net realized foreign currency transaction gains</font>                                                                                                                                                                                                                                   </p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>110,259</font></p> </td> </tr>
    <tr >
        <td width="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net change in unrealized appreciation (depreciation) on investments in equity securities</font>                                      </p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(11,017,010)</font></p> </td> </tr>
    <tr >
        <td width="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net change in unrealized appreciation (depreciation) on short-term investments and other assets and liabilities denominated in foreign currency</font>                                                                                                                                                                                         </p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:30.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(36,697)</font></p> </div> </td> </tr>
    <tr >
        <td width="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net realized and unrealized losses from investment activities and foreign currency transactions</font>       </p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:15.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(10,059,134)</font></p> </div> </td> </tr>
    <tr >
        <td width="79%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font color="#FF0000"><b><font size=1>Net decrease in net assets resulting from operations</font></b></font>                                                                                                                                                                                 </p> </td>
        <td width="20%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9,624,067)</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: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;'><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>- 13 -</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:18pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:18;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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:12pt; margin-top:0pt;text-align:left;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b>Statement of Changes in Net Assets</b></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
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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> </td>
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<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</font></b><font size=1>&nbsp;</font><b><font size=1>30, </font></b></p> </div> </td>
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<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=1>For the Year Ended October</font></b><font size=1>&nbsp;</font><b><font size=1>31, </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=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=1>2008</font></b></p> </div> </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=1>2007</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=1>&nbsp;</font></p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font color="#FF0000"><b><font size=1>Increase (decrease) in net assets from operations</font></b></font><b><font size=1>:</font></b></p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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>
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            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net investment income</font>                                                                                                                                                                                                               </p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;435,067</font></p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;252,346</font></p> </td> </tr>
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        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net realized gain (loss) on:</font></p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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>
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            <p style='margin-left:.3in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Investments</font>                                                                                                                                                                                                                                                    </p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:27.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>884,314</font></p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:21.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>7,067,731</font></p> </td> </tr>
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        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.3in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Foreign currency transactions</font>                                                                                                                                                                    </p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:27.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>110,259</font></p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:29.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(13,650)</font></p> </td> </tr>
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        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net change in unrealized depreciation on:</font></p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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>
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            <p style='margin-left:.3in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Investments in equity securities</font>                                                                                                                                                            </p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:15.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(11,017,010)</font></p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(5,579,598)</font></p> </td> </tr>
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        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.45in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Translation of short&#151;term investments and other assets and liabilities denominated in foreign currency</font>                                             </p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:29.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(36,697)</font></p> </div> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:39.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(576)</font></p> </div> </td> </tr>
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        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net increase (decrease) in net assets resulting from operations</font>                               </p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; 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=1>(9,624,067)</font></p> </div> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:21.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,726,253</font></p> </div> </td> </tr>
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        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font color="#FF0000"><b><font size=1>Dividends and distributions to shareholders from:</font></b></font></p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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>
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        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net investment income</font>                                                                                                                                                                                                               </p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:45.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </div> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; 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=1>(1,297,949)</font></p> </div> </td> </tr>
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        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font color="#FF0000"><b><font size=1>From capital stock transactions:</font></b></font></p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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>
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        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Sale of capital stock resulting from:</font></p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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>
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        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.3in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Reinvestment of dividends</font>                                                                                                                                                                                   </p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:45.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </div> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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=1>84,221</font></p> </div> </td> </tr>
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        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net increase (decrease) in net assets</font>                                                                                                                                                       </p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(9,624,067)</font></p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:27.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>512,525</font></p> </td> </tr>
    <tr >
        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font color="#FF0000"><b><font size=1>Net assets:</font></b></font></p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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>
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        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Beginning of period</font>                                                                                                                                                                                                                                 </p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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>124,291,460</font></p> </div> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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>123,778,935</font></p> </div> </td> </tr>
    <tr >
        <td width="67%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.3in;text-indent:-.15in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>End of period (including undistributed net investment income and accumulated net investment loss of $36,880 and $(398,186), respectively)</font></p> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;114,667,393</font></p> </div> </td>
        <td width="16%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <div style='border-bottom:double black 2.25pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;124,291,460</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: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;'><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>- 14 -</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:18pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:18;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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:12pt; margin-top:0pt;text-align:left;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b>Notes to Financial Statements</b></p>

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

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;text-align:justify;'><font size=2>The Japan Equity Fund, Inc. (the &#147;Fund&#148;) was incorporated in Maryland on July&nbsp;12, 1990 under its former name &#147;The Japan Emerging Equity Fund, Inc.&#148; and commenced operations on July&nbsp;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:7.69%;text-align:justify;'><font size=2>The following significant accounting policies are in conformity with accounting principles generally accepted 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:7.69%;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&nbsp;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:7.69%;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:7.69%;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 of 1986 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:7.69%;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:7.69%;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:0pt; margin-top:0pt; text-indent:7.69%;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: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:18pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:18;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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:12pt; margin-top:0pt;text-align:left;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b>Notes to Financial Statements (continued)</b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;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.  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:12pt; margin-top:0pt; text-indent:7.69%;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.&nbsp;48, Accounting for Uncertainty in Income Taxes&#151;an interpretation of FASB Statement 109 (FIN 48) was issued and is effective for fiscal years beginning after December&nbsp;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 has concluded that the adoption of FIN 48 did not result in a material impact to the Fund&#146;s net assets, results of operations and financial statement disclosures.  Management will continue to monitor the Fund&#146;s tax positions prospectively for potential future impacts.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;text-align:justify;'><font size=2>In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No.&nbsp;157, Fair Value Measurements (&#147;FAS 157&#148;).  FAS 157 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements.  FAS 157 applies to reporting periods beginning after November&nbsp;15, 2007.  The adoption of FAS 157 is not expected to have a material impact on the Fund&#146;s financial statements.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><b>Investment Manager and Investment Adviser</b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;text-align:justify;'><font size=2>The Fund has an Investment Management Agreement with Daiwa SB Investments (U.S.A.) Ltd. (the&nbsp;&#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&nbsp;million, 0.40% of the next $30&nbsp;million and 0.20% of the excess over $50&nbsp;million of the Fund&#146;s average weekly net assets, of which 60% of this fee 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&nbsp;30, 2008, expenses of $7,871 were paid to the Manager, representing
reimbursement to the Manager of costs relating to the attendance by its employees at meetings of the Fund&#146;s Board.  No such expenses were paid to the Adviser.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;text-align:justify;'><font size=2>At April&nbsp;30, 2008, the Fund owed $29,569 to the Manager.</font></p>

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

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;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&nbsp;million of the Fund&#146;s average weekly net assets, 0.15% of the next $40&nbsp;million and 0.10% of the excess over $100&nbsp;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&nbsp;30, 2008, expenses of $11,491 were paid 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:7.69%;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 $75,000 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: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>- 16 -</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:18pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:18;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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:12pt; margin-top:0pt; text-indent:7.69%;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&nbsp;30, 2008, DSTC and the Sub-Custodian earned $29,398 and $65,754, respectively, as compensation for custodial service to the Fund.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;text-align:justify;'><font size=2>At April&nbsp;30, 2008, the Fund owed $15,604, $6,250 and $4,858 to DSTC for administration, compliance and custodian fees, respectively, excluding fees and expenses of $9,067 payable to the Sub-Custodian.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;text-align:justify;'><font size=2>During the six months ended April&nbsp;30, 2008, the Fund paid or accrued $19,891 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 consultant.</font></p>

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

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;text-align:justify;'><font size=2>For federal income tax purposes, the cost of securities owned at April&nbsp;30, 2008 was $106,769,228, excluding short-term interest bearing investments.  At April&nbsp;30, 2008, the net unrealized appreciation of investments for federal income tax purposes, excluding short-term securities, of $6,085,200 was composed of gross appreciation of $12,353,712 for those investments having an excess of value over cost, and gross depreciation of $6,268,512 for those investments having an excess of cost over value.  For the six months ended April&nbsp;30, 2008, total aggregate purchases and sales of portfolio securities, excluding short-term securities, were $19,588,234 and $19,510,360, respectively.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;text-align:justify;'><font size=2>At October&nbsp;31, 2007, the Fund had a remaining capital loss carryover of $17,908,676, of which $12,645,344 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>Capital Stock</b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;text-align:justify;'><font size=2>There are 30,000,000 shares of $.01 par value common stock authorized.  Of the 14,431,605 shares of the Fund outstanding at April&nbsp;30, 2008, Daiwa Securities America Inc., an affiliate of the Manager, Adviser and DSTC, owned 14,790 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>- 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:18pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:18;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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:12pt; margin-top:0pt;text-align:left;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b>Financial Highlights</b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;text-align:justify;'><font size=2>Selected data for a share of capital stock outstanding during each period is presented below:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="32%" 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="12%" 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 Six Months Ended April</font></b><font  size=1>&nbsp;</font><b><font  size=1>30, </font></b></p>  </div>  </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</font></b><font  size=1>&nbsp;</font><b><font  size=1>31,</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="32%" 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="12%" 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>2008</font></b></p>  </div>  </td>
        <td width="10%" 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>2007</font></b></p>  </div>  </td>
        <td width="10%" 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="10%" 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="10%" 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="10%" 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> </tr>
    <tr >
        <td width="32%" 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="12%" 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>(unaudited)</font></b></p>  </td>
        <td width="10%" 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'><font size=1>&nbsp;</font></p>  </td>
        <td width="10%" 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'><font size=1>&nbsp;</font></p>  </td>
        <td width="10%" 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'><font size=1>&nbsp;</font></p>  </td>
        <td width="10%" 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'><font size=1>&nbsp;</font></p>  </td>
        <td width="10%" 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'><font size=1>&nbsp;</font></p>  </td> </tr>
    <tr >
        <td width="32%" 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="12%" 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="10%" 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'><font size=1>&nbsp;</font></p>  </td>
        <td width="10%" 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'><font size=1>&nbsp;</font></p>  </td>
        <td width="10%" 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'><font size=1>&nbsp;</font></p>  </td>
        <td width="10%" 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'><font size=1>&nbsp;</font></p>  </td>
        <td width="10%" 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'><font size=1>&nbsp;</font></p>  </td> </tr>
    <tr >
        <td width="32%" 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>Net asset value, beginning of period</font>                                                                                 </p> </td>
        <td width="12%" 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:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.61</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;8.58</font></p> </div> </td>
        <td width="10%" 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:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.79</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.24</font></p> </div> </td>
        <td width="10%" 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:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.00</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; padding:0in 0in 1.0pt 0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.54</font></p> </div> </td> </tr>
    <tr >
        <td width="32%" 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>Net investment income (loss)</font>                                                                                                  </p> </td>
        <td width="12%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.03</font></p> </td>
        <td width="10%" 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="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.01</font></p> </td>
        <td width="10%" 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'><font size=1>&#151;*</font></p> </td>
        <td width="10%" 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'><font size=1>&#151;*</font></p> </td>
        <td width="10%" 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>(0.02)</font></p> </td> </tr>
    <tr >
        <td width="32%" 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 investment and foreign currency transactions</font>          </p> </td>
        <td width="12%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; '>
<p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.69)</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; '>
<p style='margin-left:0pt;text-indent:13.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.10</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; '>
<p style='margin-left:0pt;text-indent:15.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.83</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; '>
<p style='margin-left:0pt;text-indent:21.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.55</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; '>
<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="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; '>
<p style='margin-left:0pt;text-indent:15.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.48</font></p> </div> </td> </tr>
    <tr >
        <td width="32%" 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 resulting from operations</font>                                  </p> </td>
        <td width="12%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; '>
<p style='margin-left:0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.66)</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; '>
<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> </div> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; '>
<p style='margin-left:0pt;text-indent:15.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.84</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; '>
<p style='margin-left:0pt;text-indent:21.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.55</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; '>
<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="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:solid black 1.0pt; '>
<p style='margin-left:0pt;text-indent:15.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.46</font></p> </div> </td> </tr>
    <tr >
        <td width="32%" 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="12%" 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="10%" 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="10%" 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="10%" 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="10%" 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="10%" 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="32%" 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>Net investment income</font>              </p> </td>
        <td width="12%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:10.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(0.09)</font></p> </td>
        <td width="10%" 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>(0.05)</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:18.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td> </tr>
    <tr >
        <td width="32%" 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>Dilutive effect of rights offering</font>                                                                                      </p> </td>
        <td width="12%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td>
        <td width="10%" 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="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </td> </tr>
    <tr >
        <td width="32%" 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>Offering costs charged to paid-in capital in excess of par value</font>                                                      </p> </td>
        <td width="12%" 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:15.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </div> </td>
        <td width="10%" 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:15.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </div> </td>
        <td width="10%" 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:.25in;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </div> </td>
        <td width="10%" 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:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </div> </td>
        <td width="10%" 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="10%" 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:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&#151;</font></p> </div> </td> </tr>
    <tr >
        <td width="32%" 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>Net asset value, end of period</font>                                                                                              </p> </td>
        <td width="12%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.95</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;8.61</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.58</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.79</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.24</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.00</font></p> </div> </td> </tr>
    <tr >
        <td width="32%" 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>Per share market value, end of period</font>                                                              </p> </td>
        <td width="12%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.40</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;7.97</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.14</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.51</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.08</font></p> </div> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <div style='border-bottom:double black 2.25pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.16</font></p> </div> </td> </tr>
    <tr >
        <td width="32%" 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>Total investment return:</font></p> </td>
        <td width="12%" 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="10%" 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="10%" 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="10%" 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="10%" 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="10%" 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="32%" 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 end of period, assuming reinvestment of dividends&#134;</font>                                                                                     </p> </td>
        <td width="12%" 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>(7.15)%</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:10.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>(1.05)%</font></p> </td>
        <td width="10%" 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>(3.68)%</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>39.97%</font></p> </td>
        <td width="10%" 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="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>72.53%</font></p> </td> </tr>
    <tr >
        <td width="32%" 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 end of period, assuming reinvestment of dividends &#134;</font>                                    </p> </td>
        <td width="12%" 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>(7.67)%</font></p> </td>
        <td width="10%" 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>1.42%</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>10.91%</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>24.84%</font></p> </td>
        <td width="10%" 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="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>32.16%</font></p> </td> </tr>
    <tr >
        <td width="32%" 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>Ratios and supplemental data:</font></p> </td>
        <td width="12%" 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="10%" 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="10%" 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="10%" 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="10%" 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="10%" 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="32%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net assets, end of period (in millions)</font>                    </p> </td>
        <td width="12%" 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;&nbsp;&nbsp;114.7</font></p> </td>
        <td width="10%" 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>$124.3</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;123.8</font></p> </td>
        <td width="10%" 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>$&nbsp;&nbsp;&nbsp;&nbsp;112.4</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>$&nbsp;&nbsp;&nbsp;&nbsp;90.0</font></p> </td>
        <td width="10%" 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;&nbsp;&nbsp;&nbsp;64.9</font></p> </td> </tr>
    <tr >
        <td width="32%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:.15in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Ratios to average net assets of:</font></p> </td>
        <td width="12%" 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="10%" 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="10%" 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="10%" 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="10%" 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="10%" 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="32%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:.3in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Expenses</font>                                                   </p> </td>
        <td width="12%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.10%**</font></p> </td>
        <td width="10%" 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>0.95%</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.94%</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:21.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.07%</font></p> </td>
        <td width="10%" 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="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1.50%</font></p> </td> </tr>
    <tr >
        <td width="32%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:.3in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>Net investment income (loss)</font>                                </p> </td>
        <td width="12%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.78%**</font></p> </td>
        <td width="10%" 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>0.20%</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.12%</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:21.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>0.07%</font></p> </td>
        <td width="10%" 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="10%" 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>(0.48)%</font></p> </td> </tr>
    <tr >
        <td width="32%" 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>Portfolio turnover</font>                                     </p> </td>
        <td width="12%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:15.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>17.19%</font></p> </td>
        <td width="10%" 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>61.22%</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>59.36%</font></p> </td>
        <td width="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:17.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>72.35%</font></p> </td>
        <td width="10%" 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="10%" valign=bottom style='padding:0in .05in 0in .05in'>
            <p style='margin-left:0pt;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>84.00%</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=2>&nbsp;</font></p>


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        <td width="3%" 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&nbsp;31, 2004, the total investment return includes the benefit of shares resulting from the exercise of rights.</font></p> </td> </tr></table>



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        <td width="3%" 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>



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        <td width="3%" 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=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=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>- 18 -</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:18pt;text-align:justify;border-bottom:solid 0.5pt;padding-bottom:1;padding-top:18;'><font color="#FF0000"><i><b><font size=2>The Japan Equity Fund, Inc.</font></b></i></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:12pt; margin-top:0pt;text-align:left;border-bottom:solid 0.5pt;padding-bottom:12;padding-top:0;'><b>Results of Annual Meeting of Stockholders (unaudited)</b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;text-align:justify;'><font size=2>On June&nbsp;2, 2008, 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:7.69%;text-align:justify;'><font size=2>Election of one Class I Director 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 2009.  Election of one Class II Director 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.  Election of two Class III 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 2011.</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:.35pt;border-collapse:collapse'>
    <tr >
        <td  colspan="3" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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>Number of Shares/Votes</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="33%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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>Class I</font></b></p>  </div>  </td>
        <td width="33%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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>Voted For</font></b></p>  </div>  </td>
        <td width="33%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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>Withheld</font></b></p>  </div>  </td> </tr>
    <tr >
        <td width="33%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:12.0pt'><font size=1>Yoshihiro Fujisawa</font></p> </td>
        <td width="33%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:54.75pt;text-align:left;margin-top:0pt;margin-bottom:12.0pt'><font size=1>11,071,809</font></p> </td>
        <td width="33%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:58.5pt;text-align:left;margin-top:0pt;margin-bottom:12.0pt'><font size=1>1,195,697</font></p> </td> </tr>
    <tr >
        <td width="33%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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>Class II</font></b></p> </div> </td>
        <td width="33%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="33%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="33%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:12.0pt'><font size=1>Rahn K. Porter</font></p> </td>
        <td width="33%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:54.75pt;text-align:left;margin-top:0pt;margin-bottom:12.0pt'><font size=1>11,074,494</font></p> </td>
        <td width="33%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:59.25pt;text-align:left;margin-top:0pt;margin-bottom:12.0pt'><font size=1>1,193,012 </font></p> </td> </tr>
    <tr >
        <td width="33%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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>Class III</font></b></p> </div> </td>
        <td width="33%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="33%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <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="33%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>Austin C. Dowling</font></p> </td>
        <td width="33%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:54.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>11,029,049</font></p> </td>
        <td width="33%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:58.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,238,457</font></p> </td> </tr>
    <tr >
        <td width="33%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>Richard J. Herring</font></p> </td>
        <td width="33%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:54.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>11,073,959</font></p> </td>
        <td width="33%" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:58.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>1,193,547</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:7.69%;text-align:justify;'><font size=2>In addition to the Directors re-elected at the Meeting, Martin J. Gruber and David G. Harmer were the other members of the Board who continued to serve as Directors of the Fund.</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:left;border-bottom:solid 0.5pt;padding-bottom:6;border-top:solid 0.5pt;padding-top:6;'><b>An Important Notice Concerning Our Privacy Policy</b></p>

<p style=' margin-bottom:12pt; margin-top:0pt; text-indent:7.69%;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:7.69%;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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    <tr >
        <td width="7%" 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="7%" 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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        <td width="7%" 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="7%" 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:7.69%;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:7.69%;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>- 19 -</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:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<table width="600" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font COLOR="#FF0000"><font SIZE=2>BOARD OF DIRECTORS</font></font><br> <font size=2>Yoshihiro Fujisawa, </font><i><font size=2>Chairman</font></i><br> <font size=2>Austin C. Dowling</font><br> <font size=2>Martin J. Gruber</font><br> <font size=2>David G. Harmer</font><br> <font size=2>Richard J. Herring</font><br> <font size=2>Rahn K. Porter</font></p> </td>
        <td width="351" rowspan=5 valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:18.7pt;text-indent:117.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p>
<p style='margin-left:18.7pt;text-indent:46.5pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><b><font face="Arial" size=4>Semi-Annual Report</font></b></p>
<p style='margin-left:18.6pt;text-indent:68.25pt;text-align:left;margin-top:1.0pt;margin-bottom:1.0in'><b><font face="Arial" size=4>April</font></b><font face="Arial" size=4>&nbsp;</font><b><font face="Arial" size=4>30, 2008</font></b></p>
<div style='border-top:solid black 3.0pt; padding:1.0pt 0in 0in 0in;margin-left:18.6pt;margin-right:0in'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p> </div>
<p style='margin-left:18.6pt;text-indent:10.5pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><img src="img3.jpg"><br> </p>
<div
style='border-bottom:solid black 3.0pt; padding:0in 0in 1.0pt 0in;margin-left:18.6pt;margin-right:0in'>
<p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:40.0pt'><font size=2>&nbsp;</font></p> </div>
<p style='margin-left:18.6pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:12.0pt'><font color="#FF0000"><b><font size=4>The Japan Equity Fund, Inc.</font></b></font><br> <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:18.6pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:12.0pt'><font COLOR="#FF0000"><B><font SIZE=2>INVESTMENT MANAGER</font></B></font><br> <font size=2>Daiwa SB Investments (U.S.A.) Ltd.</font></p>
<p style='margin-left:18.6pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font COLOR="#FF0000"><B><font SIZE=2>INVESTMENT ADVISER</font></B></font><br>
<font size=2>Daiwa SB Investments Ltd.</font></p> </td> </tr>
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        <td width="287" valign=top style='border-bottom:solid red 1.0pt;  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 COLOR="#FF0000"><font SIZE=2>OFFICERS</font></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> </td> </tr>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font COLOR="#FF0000"><font SIZE=2>ADDRESS OF THE FUND</font></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>
    <tr >
        <td width="287" valign=top style='border-bottom:solid red 1.0pt;  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 COLOR="#FF0000"><font SIZE=2>INVESTMENT MANAGER</font></font><br> <font size=2>Daiwa SB Investments (U.S.A.) Ltd.</font><br> <font COLOR="#FF0000"><font SIZE=2>INVESTMENT ADVISER</font></font><br> <font size=2>Daiwa SB Investments Ltd.</font><br> <font COLOR="#FF0000"><font SIZE=2>ADMINISTRATOR AND CUSTODIAN</font></font><br> <font size=2>Daiwa Securities Trust Company</font><br> <font COLOR="#FF0000"><font SIZE=2>TRANSFER AGENT AND REGISTRAR</font></font><br> <font size=2>American Stock Transfer &amp; Trust Company</font><br> <font COLOR="#FF0000"><font SIZE=2>LEGAL COUNSEL</font></font><br> <font size=2>Clifford Chance US LLP</font><br> <font COLOR="#FF0000"><font SIZE=2>INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</font></font><br> <font size=2>PricewaterhouseCoopers LLP</font> </p> </td> </tr>
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        <td width="287" 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. </font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>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> </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: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 face="Arial" 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 face="Arial" 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 face="Arial" 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 face="Arial" 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 face="Arial" 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 face="Arial" 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 face="Arial" 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 face="Arial" 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 face="Arial" 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-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 face="Arial" size=2>Item 11.  Controls and Procedures.</font></b></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
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        <td width="7%" 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: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>
        <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>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: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 face="Arial" size=2>Item 12.  Exhibits.</font></b></p>


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        <td width="3%" 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="7%" 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="7%" 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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        <td width="12%" 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 width="87%" 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:justify;'><font size=2>&nbsp;</font></p>
<br>
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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:justify;'>
<B><font SIZE=2>SIGNATURES</font></B></p>

<p style=' margin-bottom:12pt; margin-top:0pt;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:46.15%;text-align:justify;'><font size=2>The Japan Equity Fund, Inc.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:46.15%;text-align:justify;'><font size=2>By</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><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:54.77%;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 16, 2008</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;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>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:46.15%;text-align:justify;'><font size=2>By</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><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:54.77%;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 16, 2008</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:46.15%;text-align:justify;'><font size=2>By</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>\s\ Yoshihiro Fujisawa&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:54.77%;text-align:justify;'><font size=2>Yoshihiro Fujisawa, Chairman</font></p>

<p style=' margin-bottom:12pt; margin-top:0pt;text-align:justify;'><font size=2>Date:  June 16, 2008</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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<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; margin-left:7.69%;text-align:justify;'><font size=2>I, John J. O&#146;Keefe, certify that:</font></p>


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        <td width="7%" 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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            <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>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="7%" 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>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="7%" 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-2(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>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="7%" 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="3%" valign=top >
            <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 >
            <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>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="7%" 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="3%" valign=top >
            <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 >
            <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="7%" 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="3%" valign=top >
            <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 >
            <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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    <tr >
        <td width="7%" 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="3%" valign=top >
            <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 >
            <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>



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    <tr >
        <td width="7%" 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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    <tr >
        <td width="15%" 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="7%" 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 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="15%" 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="7%" 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:46.15%;text-align:justify;'><font size=2>Date:  June 16, 2008</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:46.15%;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:38.46%; text-indent:7.69%;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: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; margin-left:7.69%;text-align:justify;'><font size=2>I, Yoshihiro Fujisawa, certify that:</font></p>


<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="7%" 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="7%" 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>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="7%" 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>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="7%" 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-2(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>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="7%" 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="3%" valign=top >
            <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 >
            <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>



<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >
        <td width="7%" 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="3%" valign=top >
            <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 >
            <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="7%" 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="3%" valign=top >
            <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 >
            <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="7%" 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="3%" valign=top >
            <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 >
            <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; margin-left:15.38%; text-indent:-7.69%;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="7%" 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="7%" 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="7%" 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 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="7%" 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="7%" 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:46.15%;text-align:justify;'><font size=2>Date:  June 16, 2008</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:46.15%;text-align:justify;'><font size=2>By</font><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font size=2>\s\ Yoshihiro Fujisawa&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:54.77%;text-align:justify;'><font size=2>Yoshihiro Fujisawa, 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: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-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, 2008 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="7%" 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="7%" 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="7%" 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="7%" 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:46.15%;text-align:justify;'><font size=2>Dated:  June 16, 2008</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:46.15%;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:38.46%; text-indent:7.69%;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-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>
<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-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, 2008 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="7%" 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="7%" 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="7%" 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="7%" 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:46.15%;text-align:justify;'><font size=2>Dated:  June 16, 2008</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:46.15%;text-align:justify;'><u><font size=2>\s\ Yoshihiro Fujisawa&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:38.46%; text-indent:7.69%;text-align:justify;'><font size=2>Yoshihiro Fujisawa, Chairman</font></p>

<p style=' margin-bottom:12pt; 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: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-----
