Japan's Capital Shift: Domestic Cycle Emerges

For decades, Japanese capital has flowed overseas in search of stronger nominal growth and more attractive returns. However, this trend may be shifting as a new domestic investment cycle emerges.

A multi-year structural shift is underway, according to the article, which could bring Japanese capital back onshore and support the yen.

The rising demand for capital is expected to benefit financials and industrials, driven by nominal growth. This change in dynamics is not a near-term trade but rather a long-term opportunity.