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

[behappyalways]

Chinese representative reprimands Japanese representative with hands in pockets?
CCTV footage sparks controversy; negotiations break down, adding to the embarrassment...
Beijing announces further halt to Japanese seafood imports.

中方代表手插口袋訓斥日方?央視畫面掀議 談判破裂更尷尬...北京再宣布停止進口日水產｜非凡財經新聞｜20251119

https://m.youtube.com/watch?v=vcLGwu5nhcE

[winston]

Chinese investors lose US$55 million in Japan ETFs as ties with Tokyo hit new low

Beijing backlash over Sanae Takaichi’s Taiwan remarks – including an import ban and a travel warning – drags ETFs tracking Japanese stocks

by Zhang Shidong

Chinese investors have seen 390 million yuan (US$54.8 million) wiped off the value of exchange-traded funds (ETFs) tracking Japanese stocks, as relations between the Asian neighbours plunge to a new low after Prime Minister Sanae Takaichi’s remarks on Taiwan drew the ire of Beijing.

The five ETFs listed on mainland exchanges – four tracking the Nikkei 225 and one mimicking the Topix index – have dropped about 5 per cent over the past two weeks, underscoring how worsening ties could weigh heavily on Japan’s economy, which is already grappling with accelerating inflation amid public complaints about rising living costs.

The tumult hit ETF holders who sought exposure to Japan’s US$7.3 trillion stock market, which is among the best performers in Asia this year.

Source: SCMP

https://www.scmp.com/business/china-bus ... pe=section

[winston]

Japan's cabinet approves lavish stimulus as markets fret over Takaichi's fiscal policy

Cabinet approved a 21.3 trillion yen (HK$1.05 trillion) economic stimulus package.

The package includes general account outlays of 17.7 trillion yen, far exceeding the previous year's 13.9 trillion yen and representing the largest stimulus since the COVID pandemic. It will also include 2.7 trillion yen in tax cuts.

As for funding, we will utilise higher-than-expected tax revenues and non-tax income but any remaining shortfall will be covered by issuing additional government bonds.

"But the total amount of government bond issuance after the supplementary budget, combined with the initial budget, for this financial year is expected to be lower than last year's post-supplementary total of 42.1 trillion yen.

The size of additional government bond issuance to fund the stimulus package has still to be finalised but is expected to be larger than the 6.69 trillion yen issued for last year's stimulus.

Source: The Standard

https://www.thestandard.com.hk/market/article/317463/

[behappyalways]

As Japan Deploys Missiles Near Taiwan, China Blasts 'Right Wing' Forces Taking Tokyo To 'Disaster'
https://www.zerohedge.com/geopolitical/ ... king-tokyo

[behappyalways]

Japan Launches DOGE-Like Initiative To Cut Government Waste
https://www.zerohedge.com/geopolitical/ ... ment-waste