Japan
Japanese equities have entered a prolonged period of outperformance, both in local currency and common currency terms. Our GeoMacro strategists have a high conviction view that given recent market volatility, investors now have the opportunity to buy the…
Japan's new government will continue, but politics and foreign policy have become more competitive.
Favor JPY on dips and Japanese curve flatteners despite possible elections delays for BoJ hikes. Reports that Prime Minister Takeshi may call a snap election triggered a sharp equity rally, consistent with historical patterns of Japanese stocks performing…
Our Global Fixed Income strategists maintain an above-benchmark duration stance as labor market risks continue to support downside yield potential, even as the global easing cycle winds down. With policy normalization largely complete, monetary policy is…
From steepening to flattening. As the BoJ continues to tighten in 2026, we show why curve flatteners are finally the right trade.
The BoJ’s tightening path remains steeper than markets price, leaving JGBs unattractive in bond portfolios. The Bank of Japan raised rates by 25 bps to 0.75%, a multi-decade high, and signaled that further hikes are likely. However, the indicated pace fell…
Maintain an underweight in industrial commodities as flash PMIs confirm weak global growth momentum. December flash PMIs for developed markets pointed to subdued activity. The US composite slowed to 53 from 54.2, a six-month low, with both manufacturing and…
Short SEK/JPY as above-target inflation and firming policy expectations keep JPY yields biased higher. Japan’s November Eco Watchers Survey (EWS) missed estimates, with the “current” component slipping to 48.7 from 49.1 and expectations falling to 50.3 from…
Japanese financial assets will finally have unfettered access to outsized returns. This performance will come in fits and starts, but we are comfortable laying our cards down on buying the yen, and Japanese industrial stocks.
Stay underweight JGBs crosses as sticky inflation and improving growth momentum point to a higher terminal rate than markets expect. Japanese 2-year JGB yields have breached 1%, the highest since June 2008. BoJ Governor Ueda has signaled a likely rate hike at…