News & Insights

In February, the Japanese equity market declined with the TOPIX and Nikkei 225 indices dropping by -3.8% and -6.1% respectively. A number of factors including continued concern over President Trump’s tariffs on U.S. imports, failed ceasefire negotiations between Ukraine and Russia, and speculation over further Bank of Japan interest rate hikes led to volatility.

In January, the Japanese equity market saw modest movements, with the TOPIX up by 0.1% and the Nikkei 225 down by 0.8% at the month end. A number of factors including a rate hike by the Bank of Japan, the Fed holding rates in place and setbacks for US AI companies led to some volatility within the month.

In December, the Japanese equity market rebounded with the TOPIX and Nikkei 225 indices ending the month up by 3.89% and 4.41% respectively. Despite a US rate cut of 0.25% by the Fed, the Bank of Japan’s dovish stance contributed to the weakening of the yen.

In November, the Japanese market experienced a decline with the TOPIX and Nikkei 225 indices ending the month down by -0.5% and -2.2% respectively due to factors including expectations of a BOJ rate hike and potential upcoming US trade policy changes.

In October, the Japanese market experienced a degree of volatility but ultimately the Nikkei 225 and TOPIX indices ended the month up, at +3.1% and +1.9% respectively. Gains in the market were led by large-cap stocks, following the trend in the U.S. as major stocks hit new historic highs.

After a three-year tenure from Fumio Kishida, on October 1st Japan elected its 102nd prime minister, Shigeru Ishiba. With a newly formed cabinet much remains uncertain, but in this article we will consider the potential impact of this change of administration on the Japanese equity market.

[External Link] Katsutoshi Inadome, Chief Strategist at SuMi TRUST, recently shared his perspective on the Bank of Japan's Tankan survey and what this means for the manufacturing sector in Japan.

[External Link] SuMi TRUST AM's Chief Strategist, Katsutoshi Inadome's comments on the state of Japan's Government Pension Investment Fund have been published Financial Times.

[External Link] Katsunori Ogawa, Chief Portfolio Manager of the Sakigake High Alpha fund at SuMi TRUST AM, goes in depth on his conviction in the strength of the Japanese semiconductor industry.

[EXTERNAL LINK] SuMi TRUST AM's Chief Strategist, Katsutoshi Inadome shares his analysis on the outcome of the Bank of Japan's monetary policy meeting in September.