Policy Shift in Japan: Equal-Weighted Strategy Gains Attention Ahead of BOJ Moves

iShares MSCI Japan Equal Weighted US46435U3822

Japan’s equity market is undergoing a fundamental change as investors reassess the appeal of equal-weighted indices versus traditional market-cap benchmarks after the ruling party’s recent victory. The question now is whether the economy can navigate a higher-interest-rate environment without derailing the ongoing stock market rally.

In a speech delivered today, Naoki Tamura, a member of the Bank of Japan’s policy board, expressed an upbeat view on price stability. He indicated that the two-percent inflation target could be sustainably achieved as soon as this spring. If wage growth holds steady, the central bank would adjust monetary policy in a timely and appropriate manner.

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