Japanese Stocks Weathering Inflation Storm

Tokyo inflation has reached 2.7%, and the Bank of Japan is considering a rate hike, which could affect companies with weak balance sheets.

Three Japanese stocks stand out for their strong returns on equity, past performance, and solid finances: Recruit Holdings, Tokyo Electron, and Fujikura.

Recruit Holdings operates online hiring platforms like Indeed and Glassdoor, generating ¥1.75t from staffing, ¥1.57t from HR Technology, and ¥570b from Marketing Matching Technologies.

Tokyo Electron develops high-margin semiconductor production equipment, with a market cap of ¥28.60t and core chip equipment business driving its returns and cash generation.