Value Partners Group wrote in a report that the Japanese stock market is expected to rise in 2026, boosted by positive catalysts. A higher interest rate environment will increase the profitability of banks and financial companies. The Bank of Japan raised its policy interest rate target to the highest level in 30 years last month. Corporate governance reforms are expected to continue to unlock shareholder value by increasing dividends and share repurchases. Japanese investors, who are traditionally conservative and hold large amounts of cash, are also gradually turning to risky assets. The expanded tax-free investment quota under the Japan Personal Savings Account Program is becoming increasingly attractive to younger, more financially savvy investors. Value Partners Group said, “We believe that this structural shift in investor behavior, as well as continued progress in corporate reforms, will further enhance the attractiveness of Japanese stock assets.”

Value Partners Group wrote in a report that the Japanese stock market is expected to rise in 2026, boosted by positive catalysts. A higher interest rate environment will increase the profitability of banks and financial companies. The Bank of Japan raised its policy interest rate target to the highest level in 30 years last month. Corporate governance reforms are expected to continue to unlock shareholder value by increasing dividends and share repurchases. Japanese investors, who are traditionally conservative and hold large amounts of cash, are also gradually turning to risky assets. The expanded tax-free investment quota under the Japan Personal Savings Account Program is becoming increasingly attractive to younger, more financially savvy investors. Value Partners Group said, “We believe that this structural shift in investor behavior, as well as continued progress in corporate reforms, will further enhance the attractiveness of Japanese stock assets.”