Corporate governance reforms boost capital efficiency, leading to higher dividends, share buybacks, and improved return on equity for investors.
Earnings quality improves as firms restructure operations, cut costs, and optimize supply chains, resulting in steadier margins amid global uncertainty.
A weak yen provides export‑oriented sectors like autos, machinery and electronics a currency cushion, supporting earnings despite softer global demand.
Japan's exposure to AI, electrification, and automation cycles positions firms to benefit from rising global capital expenditure in.