IBKR Podcasts Can Japan Flip the Script from Deflation to Domination?
Nov 18, 2025
Join Nicholas Ng, Head of APEC Wealth at Daiwa Asset Management, as he unpacks Japan's economic transformation. He discusses the potential of Prime Minister Sunaya Takeuchi's promises and the anticipated Bank of Japan rate hikes. Ng explains why Japan was previously overlooked by investors and highlights the key structural reforms leading to newfound interest. He also shares insight into investment themes, from AI to robotics, and offers strategies for exposure to Japan's evolving market landscape.
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New Leadership Should Deliver Policy
- Fumio Kishida's successor has a majority, making policy delivery more feasible in Japan's consensus-driven system.
- Nicholas Ng expects most campaign promises to be achievable under the new stronger LDP leadership.
BOJ Hike Likely But Timing Is Uncertain
- The BOJ may hike once more this year but market pricing points to a higher probability in January 2026.
- Ng highlights the BOJ's caution as they monitor economic impacts before further normalization.
Deflation Kept Investors Away
- Japan languished in deflation for decades, which suppressed growth and investor attention.
- That long deflationary history explains why many global investors remained underweight Japan until recently.