A report from analaysts at JP Morgan Private Bank outline a favourable view for equities in Japan:
- “In our view, share prices do not yet fully reflect the market’s full potential.
- Although Japanese stocks currently trade in the midrange of their valuations over the past 15 years, global positioning remains underweight Japanese equities”
- We think multiples could move higher as global investors come to appreciate the structural shifts underway.
- Sectors that stand out to us include financials, consumer discretionary (excluding autos), technology, industrials and real estate.”
JPM says Japan is welcoming long-absent inflation and nominal economic growth is moving higher. Also:
