Sumitomo Mitsui Trust Asset Management
The latest research and outlooks in the ProAllocate library
- Equities
Gateway to Japan Volume 3: How to Identify the Winners in the New Regime
SuMi TRUST AM's Katsunori Ogawa argues Japanese corporate governance reform, inflation and rate normalisation are shifting management mindsets from capital preservation toward value creation, widening gaps between reforming and laggard firms. He contends active stock selection focused on semiconductor supply chains, AI enablement and global IP/content businesses will be key to capturing Japan's corporate transformation.
- Equities
Market Review for October 2026
SuMi TRUST reports Japanese equities fell in October 2026, with the TOPIX down 3.5% and Nikkei 225 down 5.2%, driven by rising oil prices and fading confidence in AI investment profitability. Defensive sectors and buybacks cushioned losses while foreign and retail investors stayed net buyers.
- Equities
Market Review for September 2026
Sumitomo Mitsui Trust International reports Japanese equities diverged in September 2026, with the Nikkei 225 gaining on AI and semiconductor strength while TOPIX fell amid geopolitical tensions and rising bond yields. It expects consolidation ahead, balancing AI-driven earnings against higher rates, inflation and geopolitical risk.
- Equities
Market Review for August 2026
Japanese equities extended gains for a fifth straight month in August 2026, with the TOPIX up 3.8% on strong earnings and easing AI-investment concerns, though foreign investors turned net sellers.
- Macro
For Japanese Equity Investors: Myth Busting — Five Assumptions That Investors Should Reconsider About Japan
Sumitomo Mitsui Trust economist Kei Fujimoto argues Japan's economy is shifting from decades of deflation toward higher inflation expectations, wage growth and monetary normalisation, though structural low growth persists. Investors should reassess assumptions about rate hikes, debt, wages and yen weakness, favouring firms adapting to the new cost and pricing environment.
- Equities
Market Review for July 2026
Japanese equities were mixed as the TOPIX hit a record above 4,000 points on strength in value and cyclical sectors, while the Nikkei 225 fell 8.1% on an AI and semiconductor sell-off. Value outperformed growth, and foreign investors returned as net buyers.
- Macro
Letter from SuMi TRUST AM – Japan Outlook for the Second Half of 2026
A Japanese market outlook forecasting continued positive GDP growth driven by wages, capex and AI demand, alongside rising bond yields, firm equities near record highs, and continued yen weakness. Middle East tensions, fiscal concerns and AI earnings shortfalls are key risks.
- Equities
Market Review for June 2026
Japanese equities rose modestly in June, with the TOPIX up 0.9% and Nikkei 225 gaining 5.6%, marking three consecutive monthly gains. Performance was highly concentrated in semiconductor, AI-related and electrical equipment stocks amid geopolitical uncertainty and BOJ tightening expectations.
- Equities
Gateway to Japan Reform or Revolution? — Corporate Governance in Japan
Japan's corporate governance reform is progressing from formal compliance toward substantive management change, driven by shareholder shifts, policy pressure and TSE's PBR initiative. With the third code revision due June 2026, a widening gap between leading and lagging firms leaves significant revaluation potential in Japanese equities.