The BlackRock Investment Institute made the correct call on Japan equities – so where in Asia is it picking market growth next? Video / Carson Bluck
BlackRock’s Investment Institute is keeping its conviction on Japanese equities with the belief that there’s more room for markets there to outperform this year, beyond its stellar run so far.
“Nominal GDP in Japan is growing and growing quite fast,” BlackRock’s chief Asia-Pacific strategist Ben Powell told Markets with Madison.
“That’s a huge change and a massive tailwind for the economy in general, and for equity markets specifically.”
Japanese equity markets were some of the best-performing globally in 2024, with the Tokyo Stock Price Index (Topix) up by 15 per cent year to date and the Nikkei 225 index up around 16 per cent.
Meanwhile, corporates were returning capital to shareholders, with dividends set to hit an annual record high this year, according to Nikkei Asia.
BlackRock revealed its overweight position on Japanese equity markets last year and was keeping it in play this year.
In a sign that equities there were priced cheap in 2023, more than 1000 listed Japanese companies, including Honda and Mitsubishi, bought back their own stock at record amounts.
Total buybacks hit a record ¥9.6 trillion ($99 billion) last year, according to Nikkei Asia.
Powell called it a “corporate governance revolution”.
BlackRock's Investment Institute is keeping its overweight position on Japanese equities. Photo / 123RF
“And I don’t use that term too often,” he said.
Watch Ben Powell discuss BlackRock’s conviction on Japan’s economy and equities, and where else he’s picking global growth for investors next, in today’s episode of Markets with Madison above.
Get investment insights from executives and experts on Markets with Madison every Monday and Friday here on the NZ Herald, YouTube and wherever you get your podcasts.
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Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.
Madison Reidy is host and executive producer of the NZ Herald’s investment show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.
