Japan’s National Strategy – Higher Stock Market Returns

(Feb 23) A new piece by Peter Tasker in which, inter alia, he considers recent comments by a TSE (Tokyo Stock Exchange) panel on companies whose share prices trade below book value, the long-term impact of last year’s changes to the TSE’s market structure, and recent changes to Japan’s savings scheme for individuals.
  • Japan is intent on democratising investment, with domestic equities the main focus
  • Financial inducements to investors dovetail with greater shareholder returns as encouraged by the Tokyo Stock Exchange’s new market structure
  • The explicit emphasis on companies with suboptimal capital structures should bring value stocks into focus