RBC BlueBay argues Japan may offer one of the most compelling developed-market opportunities in years, as investors remain structurally underexposed despite improving macro and corporate conditions.
- Japan has exited decades of deflation and is sustaining inflation near the BoJ’s 2% target, supporting nominal earnings growth.
- Corporate reforms, buybacks, dividend growth, and political stability under Prime Minister Takaichi are cited as key tailwinds.
- Over 50% of household assets remain in cash, creating potential domestic equity inflows if savings behavior shifts.
- More than 55% of TOPIX 500 firms have fewer than 10 analysts, suggesting continued scope for active stock-pickers.
Could Japan become the rare major market that is improving before investors fully notice? The note argues positioning still lags fundamentals.
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