Macro Headwinds, Attractive Valuations Put Japanese Stocks in Focus

The Bank of Japan raised interest rates in March 2024 for the first time in 17 years, marking the end of its negative interest rate policy. However, real interest rates are still consistent with an expansionary policy, supporting the outlook for Japan's economy and financial markets.

John Hall, Principal at PGIM Quantitative Solutions, explores the case for investing in Japan, particularly equities. Hall discusses the macro environment in Japan, potential risks to economic growth, and why Japanese equity valuations might be attractive for investors with a long-term horizon.