Japan’s Structural Reset Could Unlock Long-Term Equity Upside

Amundi’s Investment Institute argues that corporate governance reforms, reflation, and pro-growth policy are transforming Japan from a persistent “value trap” into a structural opportunity for equity investors. 

• Japan has exited decades of deflation, with inflation averaging ~3.1% between 2023–2025 and wages rising after years of stagnation. 

• Corporate governance reforms are pushing firms to unwind cross-shareholdings, reduce idle cash, and increase dividends and share buybacks, improving capital efficiency. 

• Foreign investors are returning, with ¥5.4 trillion in net equity purchases in 2025, reflecting renewed global interest. 

Is Japan entering a durable rerating cycle after decades of underperformance? The full report examines the structural drivers behind the shift.