Talaria’s Post

Crash-testing Japan's New Capitalism https://lnkd.in/e7eCFa4z Global macro-cycle inflection — America’s cyclical downturn is poised to force the next round of Japan’s economic restructuring. "So if, as I suspect, the global macro cycle has started to reverse, U.S.$ appreciation is a thing of the past. From here, Y115-120/$ has become a reasonable target, likely to be reached over then next 6-12 months. For Japan this means corporate earnings expectations are now too high by around 15-20%, while at the same time forecasts for a Japan consumer-led recovery are too low." #japan #carrytrade

In terms of Financial Hubs ranking, Tokyo is in the 8th place in APAC & 19th globally. And it seems Japan is attracting more interest from foreign asset managers, whereas the government plans to make the world's 4th largest economy into a major financial hub. The Japanese Yen is the world's third most traded currency behind the Euro & Greenback. According to Bain & Company, the total value of private equity deals in APAC last year fell to its lowest since 2014 amid slowing growth, high interest rates & volatile public markets. But in Japan it was different with deal value jumping 183% last year from a year earlier, making it the largest equity market in APAC for the first time. 🖊Tokyo's ranking globally by industry sector ➡ Government & Regulatory: 6 ➡ Trading: 7 ➡ Banking: 10 ➡ Investment Management: 12 The outlook for this year remains unclear due to major elections globally & geopolitical tensions. But good markets do have the potential to perform well as long as it contributes to an economy's growth. There are over 2 million expats in Japan & according to the Japan International Cooperation Agency (JICA) 6.74 million foreign workers are needed by 2040 for sustained economic growth. The number of people aged 65 or over is 29.1% in Japan, whereas the ageing population will be a challenge for the economy in the mid-term to long-term. #japan #economics #macroeconomics #apac #asia #markets #tokyo #investmentmanagement #apaceconomy

Japan's economic landscape is transforming dramatically. After years of stagnation, we're seeing significant shifts with inflation rates hitting a record high and substantial investment opportunities emerging. Additionally, an evolving real estate market and increased overseas ventures underscore a robust economic revival. Explore Part 3 of our Asia-Pacific Horizon report: https://okt.to/0V36jX #KnightFrank #KnightFrankAPAC #CRE #realestate #property #YourPartnersinProperty

With a resilient economy, mild inflation and favourable financing costs, the current landscape in Japan now presents an opportune juncture for investors to ride the wave. Discover more via the link here: https://lnkd.in/gu9DHXn3 #KnightFrankAPAC #Japan #investments

🚀 Reviving Japan's Economy: Leveraging Foreign Investment and Innovation Japan's economy has faced stagnation in recent years, leading many to question its vitality. However, amidst challenges lies an opportunity for transformation. The traditional model of Japan's economy, once a powerhouse, is facing headwinds. But through strategic foreign investment, we can infuse new capital and expertise into key sectors, revitalizing growth and fostering innovation. Foreign investment brings not only financial resources but also fresh perspectives and global networks. By welcoming foreign investors, Japan can reinvigorate its industries, from technology and manufacturing to services and healthcare. Moreover, Japan boasts a rich legacy of dedication to quality and innovation. By showcasing these strengths on the global stage, Japan can attract even more investment and partnerships. The world recognizes Japan's reputation for precision engineering, attention to detail, and commitment to excellence. Now is the time for Japan to capitalize on its strengths and position itself as a hub of innovation and manufacturing excellence. By embracing foreign investment and championing its dedication to quality, Japan can lead the next wave of economic growth and redefine its role in the global economy. Let's work together to unlock Japan's potential and build a brighter future for all. #JapanEconomy #ForeignInvestment #Innovation #ManufacturingExcellence #GlobalEconomy #Opportunity #Quality #Dedication #sushitechtokyo2024

As domestic yields have been depressed for so long, Japanese investors looked for ways to invest abroad to generate higher returns. They own $1+ trillion in Treasuries and $0.5 trillion in EUR bonds. Now that domestic yields in Japan might be on the rise, will they stop investing in foreign bonds? Welcome to another potential source of macro volatility.

This is the FT explaining why Japan has been hit particularly hard in the recent global market meltdown Despite recent bullish “Japan is back” rhetoric, and the all-time highs hit by Tokyo stocks in July, the story only ever had fragile support. Domestic institutions and individuals were never buying into the market with strong conviction, meaning that the heavy lifting of the recent rally was largely driven by foreigners. It means these investment “tourists” can pull out of the market with extraordinary speed — and they have done so. So the market rally would have been more durable if Foreigners AND Individuals AND Domestic Institutions had all been buying “with strong conviction”. Which raise the interesting - and unaddressed - question. Who would they have been buying from ? These three groups hold the vast bulk of Japanese equities . The only other major shareholders, Corporates and Banks, are but a shadow of their former selves. Contrary to conventional wisdom a bull market does NOT occur because everyone is buying as every share bought is also a share sold. Or am I missing something?

Is now the time to invest in Japan? Robust market performance in 2023 has put the spotlight on Japan as an area of interest and with the economy expected to continue moderate expansion throughout 2024, Japan's revival looks like it's here to stay.  Japan's resurgence as an investment destination of choice offers renewed scope for investors and our panel of experts next Tuesday will debate the backdrop and investment opportunities.  Register here & power your client conversations: https://lnkd.in/egT-GEdS #investmentinjapan #investmentopportunities #portfolioconstruction #investmentmanagement #bailliegifford #goldmansachs #jpmorganassetmanagement #mandginvestments

Is now the time to invest in Japan? Robust market performance in 2023 has put the spotlight on Japan as an area of interest and with the economy expected to continue moderate expansion throughout 2024, Japan's revival looks like it's here to stay.  Japan's resurgence as an investment destination of choice offers renewed scope for investors and our panel of experts next Tuesday will debate the backdrop and investment opportunities.  Register here & power your client conversations: https://lnkd.in/egT-GEdS #investmentinjapan #investmentopportunities #portfolioconstruction #investmentmanagement #bailliegifford #goldmansachs #jpmorganassetmanagement #mandginvestments

🚀💼 Why Japanese Markets Continue to Skyrocket 📈 🌟 #Post_Pandemic_Reopening: Japan's late economic recovery post-COVID-19 has instilled confidence in corporate earnings growth, alongside attractive market valuations. 🏷️#Corporate_Value_Enhancement: The Tokyo Stock Exchange has encouraged companies to focus on sustainable growth, boosting investor confidence and driving up stock prices. 🏨#Tourism_and_Trade_Rebound: The reopening to foreign tourists and resumption of trade, especially with China, is revitalizing sectors like travel and hospitality 🏨. 💰#Inflation_and_Investment: The return of mild inflation is prompting corporate investment and consumer spending 💳, fueling economic growth. The combination of these factors creates a promising landscape for Japanese equities, drawing attention from global investors. #JapaneseMarkets #EconomicGrowth #InvestmentOpportunities🌐