Japan is undergoing a profound economic transformation under its first female Prime Minister, Sanae Takaichi, whose growth-focused "Sanaenomics" policy drives investment in critical areas such as infrastructure, tech and energy. After decades of deflation, inflation has reached 2.9%, supported by a robust 5% wage growth, boosting consumption and corporate earnings.
In this episode, Ayako Lehmann speaks with Louis Chua, Asia equity research analyst at Julius Baer, about the investment landscape for Japan, against a backdrop of structural corporate reforms, strengthening earnings, and rising shareholder returns, and explores the opportunities and risks to watch ahead.
- (01:25) - What can we expect from Sanae Takaichi’s agenda?
- (02:25) - Japan’s shifting economic landscape
- (03:40) - Green shoots in Japan corporate reform
- (05:21) - Growing influence of activist investors
- (06:50) - Takeaways from Q3 earnings
- (08:39) - Diverging paths between small and large caps
- (10:17) - How does the weakening Yen impact Japanese businesses?
- (11:31) - Risks to watch
- (13:33) - Rising Japanese bond yields – a cause for concern?
- (15:07) - Are Japanese bonds finally attractive for international investors?
