Japan stocks in focus: sustainable comeback or short-term flare-up? Experts shed light on the current situation and provide valuable insights.

Japan stocks in focus: sustainable comeback or short-term flare-up? Experts shed light on the current situation and provide valuable insights.

According to a report by e-fundresearch.com, the Japanese stock market has performed strongly this year and is once again in the focus of international investors. We have collected statements from various experts who present their views on the sustainability of Nippon's comeback. There are various opinions represented, which we would like to analyze in more detail below.

According to Junichi Takayama of Nikko Asset Management, Japan's companies have become more attractive thanks to significant corporate governance reforms. The reforms have led listed companies to focus more on their cost of capital and share prices and the services sector has recovered. International investors have also warmed to Japan this year, suggesting a long-term allocation to Japanese stocks.

In contrast, Paul Jackson, global head of asset allocation research at Invesco, believes the Japanese stock market's strong performance this year is due to the currency's weakness. If this changes, it could result in below-average performance.

Redwheel's Nicola Takada Wood, on the other hand, believes the current comeback is more than just a blip. She points out that the Japanese economy has developed and many Japanese companies will have strong foreign competition in the future. Nevertheless, she sees Japan as a sensible destination for investors.

In terms of impact on the market or financial industry, the comeback of the Japanese stock market could lead to increased investment from domestic and foreign investors, which could mean stronger performance of the market in the future. Corporate sector reforms and improved corporate governance dynamics could lead to a gradual increase in share buybacks and dividend payments, which in turn is attractive to investors.

Overall, experts' opinion suggests that the Japanese stock market continues to represent a promising investment opportunity, although there are differing views on the sustainability of the current comeback.