Japan Equities: “more room for upside”

Cyclical tailwinds and structural reforms are boosting the appeal of Japanese equities. The asset class is seeing the highest inflows in 20 years. “Despite the strong rally to date, our Japan equity team believes that there is more room for upside,” says Ivailo Dikov, Head of Japan Equities at Eastspring Investments.

In a recent insight, Dikov points to the factors supporting the Japanese market such as the post-Covid recovery or the inbound tourism picking up.

Another factor Dikov see is inflation: “It appears to be broadening out and looking more sticky. This is allowing corporates which were negatively impacted by imported inflation last year to increase their pricing, benefiting margins.”

Read the full insight at eastspring.com/lu.