Asset Management One reviews the Japanese market monthly and provide you with the insightful review and outlook for Japan.
Japanese Investment Commentary and Market Outlook November 2022
“Stocks extend gains amid downshift in tightening pace”
The Japanese stock market extended gains in November along with global financial markets amidst a resurgence of optimism that the Fed would ease its hawkish tightening stance given lower than expected U.S. CPI data and FOMC minutes which signaled a downshift in the pace of rate increases. TOPIX 12 month forward PER ended at mid-12x.
The Japanese yen closed at 138.03 yen per U.S. dollar, appreciating 7.2% from the previous month.
We remain cautiously optimistic, in principle, on the stock market due to resilient corporate earnings outlook, and undemanding stock valuations, supported by the recovery of domestic consumption as the economy reopens, and domestic capital expenditure as companies intensify investments at home to increase productivity and secure supply chain.