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>The number of coronavirus cases in Japan is still rising and with it the risks of a technical recession. Despite this we remain overweight Japanese equities. From a fundamentals point of view both companies and households are in good shape. The corporate profits have softened but the cycle has not been derailed and companies remain flushed with cash. The investment cycle remains in upswing, even after 4Q GDP numbers. The share of wages in national income is rising as the labour market continues to tighten, implying that consumption spending is poised for a recovery.  </p>

The number of coronavirus cases in Japan is still rising and with it the risks of a technical recession. Despite this we remain overweight Japanese equities. From a fundamentals point of view both companies and households are in good shape. The corporate profits have softened but the cycle has not been derailed and companies remain flushed with cash. The investment cycle remains in upswing, even after 4Q GDP numbers. The share of wages in national income is rising as the labour market continues to tighten, implying that consumption spending is poised for a recovery.  

Japan: Hold Your Nerve