Institution: The US-Japan Trade Agreement - A Bittersweet Prospect for Japan's Stock Market
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Author:小编   

Hiroshi Watanabe, who heads financial market research at Sony Financial Group in Tokyo, asserts that Japan is capable of enduring a tariff level of 15%. Since April, the automotive sector has already factored in expectations of a 25% tariff, meaning a reduction in the tariff rate would assist in partially restoring earnings expectations, thereby having a notably positive effect on share prices. Nonetheless, the commitment to a $550 billion investment could spur capital outflows, potentially weakening the yen and pushing up bond yields over the long term. As fiscal risks escalate, the stock market will come under pressure.