Global investors like the new-look Japan government, for now
1. Global money managers shift focus to Japan's markets, seeking diversification. 2. Japan's new reflationist government attracts investors from expensive U.S. and European markets.
FAQ
Why Bullish?
The influx of global money managers into Japan's market could drive demand for Japanese equities, including EWJ. Historical examples, such as the Abenomics era, show that government policies can significantly bolster market confidence and investor sentiment.
How important is it?
The article highlights a significant potential shift in capital allocation towards Japan, which directly influences EWJ's price dynamics. The ongoing interest from global investors can set off lasting trends in the equity markets.
Why Short Term?
The immediate attraction of investors may lead to rapid price movements in the short term as capital flows into EWJ. Similar trends have been observed following major policy announcements by governments that lead to improved market conditions.