FLJP - What Has Led To Japan's Come-Back?
2024-05-22 09:15:00 ET
Summary
- By end-April 2024, Japanese equities had outperformed the FTSE All-World index over 12 months and in the year to date.
- Japan has undertaken significant structural corporate reforms in recent years.
- Active share buybacks by listed Japanese firms have attracted foreign investors back to the Japanese equity market.
- Retail investors in Japan are too big to ignore.
- Japan’s price/earnings ratio is slightly higher than its decade average.
By Indrani De, CFA, PRM & Zhaoyi Yang, CFA, FRM
Japanese equities have staged a strong come-back since 2023, leading many to query the reasons for the rally and wonder whether it can last. In this article, we highlight some of the key recent changes to the Japanese economy and financial markets, which may provide the answers. ...
What Has Led To Japan's Come-Back?