Our Chief Global Strategist regards Japan positively in the global-macro context and predicts that Japanese equities will outperform global equities in the first half of 2016.
Our Chief Investment Officer in Japan details the many reasons for optimism on Japanese equities in 2016
There are many concerns about Abenomics losing its power to reform the economy, but our Chief Strategist in Japan, Naoki Kamiyama, shows that the major developments in tax reform prove that Abenomics is alive and well.
John Vail reflects on the Fed decision and the path forward. The Fed was even more dovish than apparent in the headlines.
Nikko Asset Management's Global Investment Committee met on December 8th and updated our intermediate-term house view on the global economic backdrop, central bank policies, financial markets and investment strategy advice.
We only expect mild further easing ahead, especially as the ECB does not wish to cause a rupture while the Fed is hiking rates.
We forecast that Asia Pac ex Japan, Japan and Europe will outperform in the next six months, while the US should underperform and, thus, deserve an underweight stance vs. all other regions.
Looking forward, even though inventories were revised higher, their long depletion means they remain far too low in my view, and should continue start to rise significantly in the quarters and years ahead.
A framework agreement for the Trans-Pacific Partnership was reached in October 2015, and the governments of participant countries are working to ratify the agreement and formally launch the partnership.
With the aim of significantly liberalizing trade within the Asia-Pacific region, and thereby boosting trade and investment among the region's countries, a framework agreement for the Trans-Pacific Partnership (TPP) was reached in 2015.
Inbound consumption by overseas visitors to Japan continues to grow. For the nine-month period from January to September 2015, such consumption totalled a cumulative ¥2.6 trillion (approx. US$21.7 billion), which already represents a higher amount than that for all of 2014.
Once again, as has long been our view, disappointing macro-data should not worry investors in Japanese risk assets very much at all.
There are many reasons for the BOJ to defy consensus expectations for more easing.
There is an admirable effort to improve the female participation rate, but it is too early to judge whether the measures will have a major effect.
Looking at how Japanese companies fared with their April-June quarterly earnings, we can see that automobile manufacturers and major electronics producers posted large profit growth on the back of the weak yen and strong sales in the North American market.
We explain how Abenomics is the "icing on the cake" of corporate governance improvement over the last decade.
As has long been our view, disappointing economic data should not worry investors in Japanese risk assets very much at all.
We will be watching to see how companies respond this year to the Corporate Governance Code, specifically the twin issues of selling cross-shareholdings and improving capital efficiency.
Notwithstanding a brief rebound in yen strength in mid-June, the Japanese currency has continued its weakening trend against the U.S. dollar, with the yen recently dropping to its lowest level in over 12 years.
Japan’s nominal GDP, commonly used to gauge a country’s real standard of living, has remained mostly unchanged since the 1990s following the collapse of Japan’s asset price bubble and the onset of deflation.