The future looks Suga sweet

Japanese equities are well placed to excel in 2021, in our view, with various factors underpinning our positive outlook, heading into the new year. Not least of these is the cyclical nature of the Japanese market, which is highly leveraged to a post pandemic global recovery. Importantly, new Prime Minister Yoshihide Suga has also vowed to continue to drive Japan’s structural improvement, including market and governance reform, as well as focus on boosting productivity. Competitive valuations, and a greater company emphasis on higher shareholder returns, are further potential performance drivers. In short, we believe that now is a good time to be invested in Japan, and we outline four key reasons for this view in more detail in this paper.