MSCI Keeps Dropping Japan Stocks From Its Indexes

The video discusses Japan's continued underperformance in equities compared to other developed markets, particularly the US. This is attributed to foreign investors favoring growth stocks over Japan's cyclical stocks. The reduced weighting of Japanese equities by MCI is seen as a significant setback, leading to further outflows of foreign funds. Concerns about the Kushida administration's policies and the impact of a new virus add to the uncertainty, affecting investor confidence and the economic outlook for Japan.

In what ways has the Kushida administration's policies influenced foreign investors' perceptions?

What uncertainties are surrounding the outlook for Japanese equities?