Market take cover image

Market take

Japan stocks: high can go higher

Feb 26, 2024
Discussion on why Japanese equities are on the rise, including robust earnings, corporate reforms, and concerns about deflation. Analysis points to continued growth potential in Japan's market.
03:52

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Despite Japan's equity market at all-time highs, valuations remain reasonable due to low rates and post weaker currency.
  • Corporate reforms in Japan lead to better cash management and ROE, enhancing market prospects.

Deep dives

Rationale Behind Investing in Japanese Equities

Investing in Japanese equities is favored due to several reasons. Firstly, despite Japan's equity market reaching all-time highs, valuations remain reasonable due to the low rate environment and the initial boost post weaker currency. Secondly, corporate reform in Japan, although historically slow, has picked up pace leading to improvements in cash management and return on equities, enhancing market prospects. Lastly, earnings growth in Japan has been robust, with operating profits showing a 17% year-on-year increase, supported by upward revisions in expectations. These factors collectively contribute to a positive outlook on Japanese equities.

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode