Japanese Investment Commentary and Market Outlook January 2024
‘Stocks surge on Overseas Inflow’
The Japanese equity market rose substantially in January. The attractiveness of the Japanese market compared to global markets, combined with the reduced underweight positions of overseas investors
in Japanese stocks, resulted in a substantial surge in Japanese equities.
The TOPIX 12-month forward Price-to-Earnings (PER) rose to mid-14x, while the 12-month forward Earnings Per Share (EPS) also continued to rise. In terms of style, large-cap value stocks outperformed small-cap and growth stocks.