Goldman Sachs says U.S. investors are ramping up their exposure to Japanese equities, chasing the country’s standout returns and its growing focus on technology and artificial intelligence.
The report on the note is via Bloomberg.
Bruce Kirk, Goldman’s chief Japan equity strategist, said inflows from the U.S. are now accelerating at the fastest pace since the Abenomics era
- active participation by U.S. investors is the highest since October 2022
- Goldman Sachs is fielding an increasing number of meeting requests from U.S. clients.
- rising participation of U.S. funds could mark a turning point, as foreign investors shift toward growth and technology shares after years of value-stock dominance
- Tokyo’s pro-investor reforms and the government’s corporate-governance drive have supported
- global investors’ holdings of Japanese equities remain light compared with the peak Abenomics period, suggesting room for further buying
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The surge reflects Japan’s strong performance in dollar terms. The Nikkei 225 has jumped about 30% this year, far ahead of the S&P 500’s 14% gain, helped by a firmer yen and investor optimism over Prime Minister Sanae Takaichi’s pro-stimulus economic stance.
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Renewed U.S. inflows into Japan could support the Nikkei’s outperformance and reinforce global risk appetite. The shift toward Japanese tech and AI shares also suggests investors are diversifying away from U.S. megacaps, potentially broadening global equity leadership.
This article was written by Eamonn Sheridan at investinglive.com.