Nikko Asset Management Is 'Moderately Positive' on Japan Stocks

The video discusses the impact of a weaker Japanese yen on the equity market, highlighting its correlation with the U.S. Treasury yield and its benefits for corporate earnings. Despite these positives, global economic challenges, such as underperforming growth and inflation, pose risks. Japan's limited exposure to Russia and its strong corporate profits, despite demographic challenges, are noted. The video also explores the mixed effects of yen weakness on exporters, given the economic conditions in Europe and China.

How does a weaker yen generally affect Japanese corporate earnings?

• It has no effect on corporate earnings.

• It only affects small businesses.

• It decreases corporate earnings.

• It increases corporate earnings.

What is the term used to describe the expected economic condition of moderate underperformance in growth and inflation exceeding consensus?

• Deflation

• Hyperinflation

• Stagflation Lite

• Recession

How is Japan's exposure to Russia compared to Europe?

• More exposed

• Not exposed at all

• Less exposed

• Equally exposed

Despite demographic challenges, what has contributed to the rise in Japanese corporate profits?

• Improved corporate governance and productivity

• Increased government spending

• Decreased foreign investment

• Higher taxes

What is the mixed effect of yen weakness on Japanese exporters?

• It only benefits exporters.

• It has no effect on exporters.

• It benefits exporters but is countered by weak foreign economies.

• It harms exporters.