“Japan: Back in the Big Time?”, Ryoji Musha, Musha Research

David Osman of the IRF is joined by Ryoji Musha, the Founder of Musha Research.   Ryoji Musha founded Musha Research in 2009 following a long and distinguished career working for leading global investment banks in Japan and the USA since 1973. During that period, he achieved the top-rating for Japan Equity Strategy in the Institutional Investor polls.   In this podcast Ryoji Musha discusses the reasons for the dramatic improvement in the outlook for the Japanese economy. He identifies the importance of the improving competitiveness of the Japanese yen against the US dollar and crucial global geopolitical factors, particularly the troubled US-China relationship, as well as the emerging secular trends in the domestic economy. Ryoji Musha also explains the ongoing changes in the Bank of Japan’s monetary policy stance that will lead to the effective elimination of the yield curve control (YCC) policy and other unconventional monetary policy measures by the end of next year. He also sets out the pathway for economic growth and a sustained return to the BOJ’s 2%pa inflation target. He assesses when and by how much Japanese interest rates are likely to rise in 2024 and what this will mean for the 10-year government bond yield. Ryoji Musha concludes with an assessment of bullish factors driving the strong performance of the Tokyo stock market and foresees a significant increase in the weightings of Japanese equities in global portfolios.   Musha Research was founded in 2009 to provide more direct assistance with financial market analysis and the determination of medium and long-term outlooks. The activities of Musha Research are guided by three principles: adhering to consistent logic; reaching conclusions based on their own beliefs; and using a viewpoint that incorporates both history and a global perspective.