Deputy Chief Economist

Sharmila Whelan

Independent and original Asian investment research

Aletheia Capital

Aletheia Capital (HK) Ltd. (previously known as Asianomics) combines the extensive knowledge of its experienced team with technology and regulatory changes to disrupt Global Markets business in Asia. The firm is completely independent with no conflicts of interest either on Investment Banking advisory or Capital Markets execution.

Macroeconomics

<p>We are overweight Japanese equities and expect the stock market to outperform from here as investors hedge against regional peers more dependent on exports for growth and exposed to China. Rising global trade tensions are taking their toll on Japanese business sentiment but not on corporate profitability, investment spending and payrolls. This bodes well for domestic demand and the resilience of the business cycle upswing, which is gaining momentum. That alone is a good reason for increasing exposure to Japanese equities.  </p>

We are overweight Japanese equities and expect the stock market to outperform from here as investors hedge against regional peers more dependent on exports for growth and exposed to China. Rising global trade tensions are taking their toll on Japanese business sentiment but not on corporate profitability, investment spending and payrolls. This bodes well for domestic demand and the resilience of the business cycle upswing, which is gaining momentum. That alone is a good reason for increasing exposure to Japanese equities.  

MSCI AC Asia ex Japan Index (MXASJ INDEX)

Japan Equities - Time To Shine