Japan’s economic outlook looks to be one of the most optimistic among the major economies this year and the next, driven by the country’s reopening from the pandemic, strong export growth due to a weak Japanese yen and a stimulative monetary policy maintained by the Bank of Japan.
In fact - the Japanese stock market has seen a strong rally so far this year, which has driven the Topix to its highest level in more than three decades.
Meanwhile, The Bank of Japan has loosened its grip on bond yields in Governor Kazuo Ueda’s first surprise move since taking the helm, a step that will likely spur talk of potential policy normalization to come..
So What’s next for Japanese equities?
On Money in the Market, Hongbin Jeong speaks to Aaron Chwee, Head of Wealth Advisory, OCBC Bank to find out why Japanese equities are so attractive right now.