According to Jinshi, Lazard Asset Management said that the current pullback in Japanese stocks after a very strong period is an opportunity for investors. The company believes that the market underestimates the long-term potential of the structural changes underway in the country.
Lazard believes two key themes will continue to play out: improvements in corporate governance driving higher capital efficiency and shareholder returns, and the shift from deflation to inflation changing consumer behavior.
Any progress in yields should boost investor sentiment in the coming months, while another rate hike by the Bank of Japan would also be a positive.