Japan 07 (Oct 23 - Dec 26)

[winston]

Goldman sees US investors flocking to Japan as Nikkei surges

by Momoka Yokoyama

US investors are increasingly buying Japanese stocks focused on tech and artificial intelligence, lured by the country’s outsized returns compared with US stocks.

The increase in US flows is now moving at the fastest pace we’ve seen since Abenomics.

The inflow of US funds reflects the strong performance of Japanese equities in dollar terms this year. They have been helped by a 2.5% gain in the yen and renewed optimism driven by the pro-stimulus policies of prime minister Sanae Takaichi.

The benchmark Nikkei 225 index has climbed about 30% in dollar terms this year, far outpacing the S&P 500 index’s 14% gain.

Source: Bloomberg

https://www.theedgesingapore.com/news/h ... kei-surges

[winston]

Will the Nikkei 225 sustain its momentum into 2026?

In the short term, asymmetric downside risk warrants more conservative stop losses in trading setups

by Danish Lim

The top three constituents by weight are Advantest (semiconductor testing solutions), Softbank (multinational investment holding company), and Fast Retailing (Uniqlo).

In September when she said that it would be “stupid” to raise interest rates and that a weak yen has many upsides in addition to downsides. This rhetoric has led to the yen weakening against the US dollar. A weaker yen, which benefits Japanese exporters, also contributed to the Nikkei 225’s October surge.

From a valuation perspective, the Nikkei remains appealing, trading at an approximate 21 per cent discount to the S&P 500 (TTM P/E 23.4x vs 28.5x) and just below its own five-year average of 24.5x.

In the short term we remain cautious of asymmetric downside risk, as markets appear more vulnerable to a larger drawdown than a rebound to test all-time highs.

We believe this asymmetric risk warrants more conservative stop losses in trading setups.

Source: Business Times

https://www.businesstimes.com.sg/compan ... entum-2026

[behappyalways]

Japanese Prime Minister Takaichi's statement in the Diet that "something might happen to Taiwan" could trigger a "life-or-death crisis" for Japan.

日相高市在國會說出"台灣有事"或觸發日本"存亡危機事態"【短篇】#TVBS文茜的世界周報 20251115

https://m.youtube.com/watch?v=wSf1itOF4ng

[behappyalways]

Panasonic lays off 10,000 employees, sparking a wave of layoffs in Japan

Panasonic裁員一萬人 掀起日本"黑字裁員"潮【短篇】#TVBS文茜的世界財經周報 20251116

https://m.youtube.com/watch?v=h1VDDIokVGw

[behappyalways]

Threats Of Sanctions, Economic Warfare, As Japan-China Relations Sink To Decades Low
https://www.zerohedge.com/geopolitical/ ... ecades-low