Asia Equity Market Arithmetic: Value in Japan Reflation

Japanese equities experienced a lift following PM Takaichi's landslide victory, reinforcing a reflationary trend that favors Value stocks. The Value factor, led by Financials and Industrials, remains strongly driven by JGB yields and USDJPY levels.

Key Takeaways

• 1.The landslide victory for PM Takaichi in Japan reinforces the country's shift toward a reflationary environment, which historically supports the Value equity style.
• 2.The top-quintile Value basket is currently concentrated in cyclical sectors, specifically Financials and Industrials.
• 3.10-year JGB yields and the USDJPY currency pair remain the primary macro drivers for the Value factor in Japan.

Table of Contents

• Asia Equity Market Arithmetic
• Market performances (%)
• Sector performance*
• Market P/E ratio aggregates
• Sector P/E ratio aggregates
• Sector EPS Growth aggregates
• Country P/E ratio & EPS Growth aggregates
• Regional EPS momentum
• Sector earnings consensus changes (ytd)
• Regional earnings consensus changes (ytd)
• Asia consensus quarterly earnings
• Last month's factor performance across regions
• APAC ex JP: Monthly top vs bottom 10 factor performance

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