Insights

Investment Insights by our experts and thought leaders

Abenomics Shows Power through Tax Reform

There are many concerns about Abenomics losing its power to reform the economy, but our Chief Strategist in Japan, Naoki Kamiyama, shows that the major developments in tax reform prove that Abenomics is alive and well.

Some Things That Worry Me

It has of course become something of a tradition to do a ‘year ahead’ piece covering themes that could potentially shape the investment landscape and, with this in mind, we have decided to offer our thoughts on just what may lie ahead over the course of what we suspect is going to be a particularly interesting year.

China: Lost in transition?

James Eginton provides his insights on the economic transition in China following a recent research trip to the region. The transition from a reliance on infrastructure investment to consumer spending - perhaps the largest the world will ever see - has significant implications for global growth.

The Fed was even more Dovish than Apparent in the Headlines

John Vail reflects on the Fed decision and the path forward. The Fed was even more dovish than apparent in the headlines.

US & China Economies Sturdy in 2016; So-So for EZ and Japan

Nikko Asset Management's Global Investment Committee met on December 8th and updated our intermediate-term house view on the global economic backdrop, central bank policies, financial markets and investment strategy advice.

Fed Normalization, but not ECB or BOJ

We only expect mild further easing ahead, especially as the ECB does not wish to cause a rupture while the Fed is hiking rates.

We forecast that Asia Pac ex Japan, Japan and Europe will outperform in the next six months, while the US should underperform and, thus, deserve an underweight stance vs. all other regions.

India: Modi Mania

Our investment management teams have again come together to update their views given new developments in India.

Japan's revised GDP: No Recession as Inventories Finally Realistic

Looking forward, even though inventories were revised higher, their long depletion means they remain far too low in my view, and should continue start to rise significantly in the quarters and years ahead.

Divergent monetary policy in US and Europe: Can it last?

As we enter 2016, we believe the divergent monetary policy theme will continue -- with the major risk to global bond markets and Fed rate rises continuing to be Europe.

The Threat to Global Growth from Rising Inventories

It must be remembered that 2015, like 2014 and 2013 before it, was supposed to be the year in which the US and indeed other consumers finally threw off the shackles of the Post GFC era and raised their level of spending on the back of falling energy prices and rising housing and property wealth.

What's to come? - China's RMB as a global reserve currency

The IMF's decision to include the Renminbi into the SDR is a major push for the RMB to become one of the world's major reserve currencies.

Australia: Lower GDP growth and CPI should mean lower 10-year bond yields

Our lead Australian fixed income portfolio manager discusses her intermediate-term outlook for the bond market “down under.”

Asia ex-Japan Equities - Historic Price to Book Valuation buying opportunity emerges

Developed and emerging markets in Asia ex-Japan have clearly been under tremendous pressure in recent months, including redemptions of more than USD 50bn from the region in September, the heaviest ever witnessed.

Did ECB QE Jump-start Eurozone Earnings Like the US Experience?

We update our views on whether ECB QE has had a positive effect on corporate earnings.

Japan: Paying the Piper Thirty Years On

“Monetary Policy can only take growth from other countries or borrow it from the future” – Masaaki Shirakawa, during a private conversation, September 2015

Why the BOJ does not need to ease much, if at all

There are many reasons for the BOJ to defy consensus expectations for more easing.

Abenomics 2.0: Focusing on Women’s Participation

There is an admirable effort to improve the female participation rate, but it is too early to judge whether the measures will have a major effect.

What Investment Themes Will Drive Credit Markets?

What Investment Themes Will Drive Credit Markets?

A better supply/demand balance in Europe, outperformance of “high yield“ globally, positive event-risk in the telecom sector and opportunities in local currencies, as well as other credit related investment themes, all present interesting opportunities for generating positive returns, even in a challenging environment.

Sifting Through The Ruble: Global Commodity Currencies

Our Nikko Asset Management fixed income experts, led by Simon Down, discuss the prospects for commodity currencies.