Summary
- The positive trend in the Japanese market is attracting foreign investor flows, amid expectations of further profit recovery.
- Wage negotiations in the spring are expected to lead to wage rises, further helping the country come out of deflation.
- Yen dynamics and Bank of Japan actions are key elements to watch. We expect a gradual normalisation of monetary policy.
Actionable Ideas
- Japanese equities
Japanese equities are benefitting from improving domestic activity and the country coming out of deflation. We believe that this asset class may bring value to a global allocation.
- Global equities
As some of the US mega caps look expensive, investors should consider broadening their investment universe to global markets to explore opportunities in Japan and Europe.
Key Dates
12, 13 Feb India, US CPI |
14 Feb |
15 Feb US Retail Sales, Japan GDP |