Beyond Markets

Japan is undergoing a profound economic transformation under its first female Prime Minister, Sanae Takaichi, whose growth-focused "Sanaenomics" policy drives investment in critical areas such as infrastructure, tech and energy. After decades of deflation, inflation has reached 2.9%, supported by a robust 5% wage growth, boosting consumption and corporate earnings.

In this episode, Ayako Lehmann speaks with Louis Chua, Asia equity research analyst at Julius Baer, about the investment landscape for Japan, against a backdrop of structural corporate reforms, strengthening earnings, and rising shareholder returns, and explores the opportunities and risks to watch ahead.

  • (01:25) - What can we expect from Sanae Takaichi’s agenda?
  • (02:25) - Japan’s shifting economic landscape
  • (03:40) - Green shoots in Japan corporate reform
  • (05:21) - Growing influence of activist investors
  • (06:50) - Takeaways from Q3 earnings
  • (08:39) - Diverging paths between small and large caps
  • (10:17) - How does the weakening Yen impact Japanese businesses?
  • (11:31) - Risks to watch
  • (13:33) - Rising Japanese bond yields – a cause for concern?
  • (15:07) - Are Japanese bonds finally attractive for international investors?

What is Beyond Markets?

“Beyond Markets” by Julius Baer is a series featuring conversations with experts to share recent market developments, key insights, and strategic inputs from around the globe. In each episode, we cut through the noise to offer practical advice and macro research on today’s shifting economic and market landscape.
The information contained in this podcast is marketing material. Opinions expressed do not constitute independent financial/investment research, investment advice, or an offer to buy or sell securities by Julius Baer. Please refer to www.juliusbaer.com/legal/podcasts for important legal information prior to listening to this podcast.