Q. What is “Revisit Japan?”
A. We encourage investment in Japan and promote the Japanese market to global investors. Specifically, that means two things:
- Our researchers provide investment ideas and macroeconomic trends for all sectors under the theme of "New Trends in the Japanese Economy" via reports and webcasts.
- We also visit overseas institutional investors
Q. What makes Japanese stocks attractive for institutional investors outside of Japan?
A. In March 2023, the Tokyo Stock Exchange issued a request for companies to improve their PBR (price-to-book ratio) in its "Action to Implement Management that is Conscious of Cost of Capital and Stock Price." This is one reason why we tell investors that the expectation for a rise in Japanese stock prices—in tandem with price and wage increases and overcoming deflation--is not temporary, but sustainable over the medium to long term.
Q. Which countries have you visited thus far?
A. We’ve approached investors in various countries in Europe, the Americas, Asia, and the Middle East. In the Middle East, our equity strategists met with investors for the first time in 20 years last year. We noticed that while investors had ample funds and an increasing appetite for Japanese equities, they had not yet seriously invested in them. Many investors, who were just turning their focus to Japanese stocks, expressed interest in visiting Japan and seeing the economy in person.
Q. What has been the response from global investors?
A. We’ve seen a change in attitude among long-time investors who had been skeptical about Japan overcoming deflation. A veteran investor who has been watching the Japanese market for nearly 40 years said that he saw the Japanese economy repeatedly attempt to overcome deflation since the post-Bubble Era, only to end up regressing. However, this time he said he felt the change was real.
Q. What have you accomplished so far?
A. The term "Revisit Japan" has two meanings. First, we want investors to take a look at Japan again and invest in the Japanese markets. Second, we want them to actually visit Japan. Leveraging Nomura's deep research offerings and strong global network, we have bolstered our approach to overseas institutional investors. As a result of Nomura's visit, some institutional investors are thinking more positively about investing in Japanese markets and want to visit Japan to better understand the economic situation. So we are seeing a positive response to the initiative.
Through Revisit Japan, we have been able to connect with more overseas institutional investors than ever before. We will continue to take an effective approach in order to expand our business.