Japanese Investment Commentary and Market Outlook October 2023
'Large-Cap Growth Stocks Thrive as Interest Rates Fall'
In November, the Japanese stock market rebounded sharply, following the trend set by U.S. equities. This surge was attributed to the decline in U.S. interest rates, which was fuelled by the market’s expectation of the end of the U.S. rate hike cycle. Large-cap growth stocks outperformed against the backdrop of falling long-term interest rates in the U.S. and Japan.
The TOPIX 12-month forward Price-to-Earnings (PER) remained below 14x, while the 12-month forward Earnings Per Share (EPS) continued to rise.
Written by Serge Kasai, Senior Product Specialist, Asset Management One Co., Ltd