US investors flock to Japanese equities amid Nikkei’s massive returns
News Summary
US investors are increasingly buying Japanese stocks, particularly in tech and AI, drawn by the country's substantial returns compared to American equities, Goldman Sachs reports. The Nikkei 225 index has climbed approximately 30% in dollar terms this year, significantly outperforming the S&P 500's 14% gain, while a 2.5% yen appreciation has also contributed. Bruce Kirk, Goldman Sachs' chief Japan equity strategist, noted that US fund inflows are at their fastest pace since
Background
Since 2021, driven by a series of pro-investor initiatives from the Tokyo Stock Exchange and the Japanese government aimed at enhancing corporate governance and capital efficiency, value stocks in Japan have outperformed growth stocks for four consecutive years.
In-Depth AI Insights
Is the US investor shift towards Japanese growth stocks merely a short-term trend, or does it signal a deeper, structural change? - Superficially, it appears to be a short-term boon driven by Japan's strong market performance and yen appreciation. However, Goldman Sachs' mention of the fastest inflow pace since