The Tokyo Stock Exchange reaches new heights. Both the Nikkei Index and the Topix are celebrating. Among the big winners is the financial sector (banking and insurance), which should be one of the big winners of the gradual rise in Japanese bond yields.
There is also the craze for artificial intelligence. If the main players in the sector are American, some Japanese technology companies, especially in the semiconductor and memory sector, benefit in turn.
Equally important, Japan continues to benefit from reforms put in place by Prime Minister Kishida, which have prompted households to invest their money rather than leave it dormant in an account, as well as improved corporate governance in Japan. Finally, it is impossible not to mention the extreme weakness of the Japanese yen, which makes Japanese financial assets cheap and boosts the country’s competitiveness in global markets.
We continue to invest in Japanese equities across all of our diversified portfolios.