Japan enters 2026 with renewed economic momentum – powered by strong wage dynamics, resilient household demand, and a decisive policy shift toward semiconductors, AI, and national security. As the Bank of Japan carefully normalises monetary policy and structural reforms accelerate, the country is unlocking fresh opportunities across both public and private markets.

 

In this PERSPECTIVES Special we explore how Japan’s evolving geoeconomic strategy, innovation push, and corporate transformation are set to reshape the investment landscape in the years ahead.

 

Key takeaways

  • Japan’s cyclical recovery is strengthening, supported by strong wage growth and resilient domestic demand that offset tariff pressures.
  • The Takaichi administration’s fiscal package marks a shift towards strategic, security oriented investment, particularly in semiconductors, AI, and defence, while still providing targeted household relief.
  • Monetary policy is normalising with higher BoJ rates and rising JGB yields, supporting banks and setting the stage for gradual JPY appreciation.
  • Structural reforms, stronger corporate governance, and strategic capex are creating attractive opportunities across listed equities and private markets.

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The PERSPECTIVES Special is currently available and client-ready for the following regions: Germany, Americas, Europe, Middle East, Africa and Asia Pacific.

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