The Japan Exchange Group, which runs the Tokyo Stock Exchange (TSE), announced on 7 August that the composition of the JPX-Nikkei Index 400 will change for the first time since the index was created in January of this year.
Domestically produced goods and imported finished consumer goods both rose mildly MoM. This must be causing much doubt at the BOJ about achieving the 2% Core CPI target.
Last month we described Japan’s “Show me the Money” corporate governance as regards the sharp rise in corporate profit margins to new highs. This theme is paralleled by the trend in dividend payments.
The plan to lower Japan’s corporate tax rate as part of the government’s growth strategies is attracting a great deal of attention from the markets, but equally important is the government’s initiative to strengthen corporate governance and to change how company managers think about governance.
At an extraordinary meeting on 24 June, Japan’s Cabinet approved a new growth strategy and the detailed policy proposals to implement it.