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 |
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