The Bank of Japan will tighten policy - but not by enough

Outlook is nuanced

The Japanese market created global headlines last month when the Nikkei reached a 33-year high, breaking above 31,000.

Excitement had been building with a long list of potential catalysts: an attractively priced market (1.3x price-to-book), a corporate governance revolution (boosted by Tokyo Stock Exchange policy), a cheap yen, Japan's delayed reopening after Covid (which was downgraded in-line with flu only in May), the return of foreign investors, buying by domestic retail investors, and inflation/wage hikes that have been the highest in decades. Ritu Vohora T. Rowe Price: Japan is gathering momentum The Nikkei has continued to rally since the May breakthrough and foreigners have been net buyers of ...