Asia-Pacific

Investment Insights by our experts and thought leaders

Japan in Motion: What does the future hold?

We believe that Abenomics is working, however we feel that its success cannot be determined by viewing government policy frameworks in isolation.

Forbes: Why The Yen Should Not Strengthen In A Crisis

“Any major crisis in the Northeast Asian region, especially one involving a crisis within Japan’s borders, is likely to be handled very aggressively by the Bank of Japan (BOJ), with it bending the rule-book as much as the Fed did during the Global Financial Crisis or as the ECB has done in the past five years.”

John Vail, Chief Global Strategist for Nikko Asset Management, contributes a regular column to Forbes.com

Japan’s Inflation and Monetary Policy Outlook

Our Tokyo Fixed Income team explains its view on the Japanese labor market and its effect on consumer inflation and Bank of Japan policy.

Value Investing now back in favour — Will this continue?

During the 2016 December quarter, we witnessed the value style stage a partial recovery after having underperformed for at least two years or so. Is this as good as it gets? Or will value continue to outperform after its initial recovery, after having being in the wilderness for some time?

China started 2017 with real momentum, following the property driven debt-fuelled stimulus of last year, and the blue skies a result of Government directives to curb pollution during March’s Central Government meetings. However, with an expectation of lower steel intensity sectors driving growth this year, what will this mean for Australia’s resource sector?

Asian Equity Monthly Outlook - April 2017

MSCI Asia ex Japan (AxJ) was up 3.3% in USD terms, outperforming MSCI AC World. All Asian markets rose over the month, with gains led by India and Korea.

Five Charts to Watch

As commodity prices have risen, the Australian economy is set to benefit from these continuing gains.

Asian Fixed Income Monthly Outlook - April 2017

US Treasury (UST) yields rose in the first half of the month buoyed by hawkish comments from the Federal Reserve (Fed), a solid US jobs report and possible scale back of quantitative easing (QE) by the European Central Bank (ECB).

Move over OPEC, there is a new commodity cartel in town... China

China has had a significant impact on the supply side in two key global commodities during 2016. Going forward, look out for further actions from China on the supply side of commodities.

Asian Equity Monthly Outlook - March 2017

MSCI Asia ex Japan (AxJ) was up 3.4% in USD terms, marginally outperforming MSCI AC World. Absolute returns were positive for all AxJ markets except the Philippines.

Asian Fixed Income Monthly Outlook - March 2017

US Treasury (UST) yields traded in a tight range in February. Risk assets rallied and UST yields rose in the first half of the month, on the back of the prospect of tax cuts and a Dodd-Frank overhaul in the US.

Japan’s “Show Me the Money” Corporate Governance: 4Q update

Given the release of the fourth quarter data, we update our decade-long theme about improving corporate governance in Japan.

Asia Credit - A New Major Global Asset Class

Asia’s Credit market has come a long way since the Asian Financial Crisis of 1998, having evolved into a large, deep and liquid market.

Asian Equity Monthly Outlook - February 2017

Asia ex-Japan (AxJ) equities returned 6.2% in US Dollar (USD) terms, outperforming MSCI World. Singapore, Hong Kong and Chinese equities outperformed while Indonesia, Malaysia and Thailand lagged.

Asian Fixed Income Monthly Outlook - February 2017

US Treasury (UST) yields ended higher in January as weaker-than-expected payroll data led markets to moderate their forecasts for Federal Reserve (Fed) rate hikes in 2017.

Why ESG for Emerging Asia

Given the challenges, why bother?

Asian Credit Outlook 2017

In-depth report: Economic growth in Asia is expected to remain broadly stable in 2017. While there will be greater external uncertainties as well as country-specific challenges, Asian economies are, on balance, better equipped to deal with external pressures compared to a few years back.

Asian Equity Monthly Outlook - January 2017

Asia ex-Japan (AxJ) equities returned -2.0% in US Dollar (USD) terms, underperforming MSCI World and MSCI Emerging Markets (EM). Currencies across AxJ generally weakened against the dollar following the Federal Reserve's (Fed’s) decision to hike rates.

Asian Fixed Income Monthly Outlook - January 2017

USTs weakened further in December, as caution prevailed following the November sell-off. As widely expected, the US Federal Reserve (Fed) raised interest rates by 25 basis points (bps).

Global trade the key for Japan

As we start 2017, we expect the continued recovery in Japan’s economy will be driven by three factors outlined in this article.

Trump as Teddy Roosevelt

Trump certainly is non-conventional, in many ways similar to Teddy Roosevelt. Hopefully, Japan can adapt to this new reality, and instead of blocking Trump's initiatives, be able to have acceptable compromise “deals” ready.

House View: Bullish on Global Equities and the USD in 2017

Nikko AM's Global Investment Committee's 2017 Outlook — More Economic and Equity Reflation, Despite Less Dovish Central Banks

Japan Equity Market Outlook 2017

We believe that in an increasingly uncertain world, Japan’s less uncertain market will provide a compelling opportunity for serious investors.

Asia ex-Japan Equity Market Outlook 2017

The phrase “lower for longer” could well become unfashionable very quickly after years of central banks combating the forces of deflation and wishing for inflation instead.

Asian Equity Monthly Outlook - December 2016

Asia ex-Japan equities returned -2.9% in US Dollar (USD) terms, underperforming MSCI World.

Asian Fixed Income Monthly Outlook - December 2016

UST yields surged in the month as Trump's election victory prompted expectations of a significant fiscal package and possible upside inflation risk under the new administration.

Asia’s Coming Healthcare Boom

A combination of key regional factors—including demographics, urbanization and existing infrastructure gaps—all point to sustainable growth for healthcare in Asia ex Japan.

Five Charts to Keep an Eye On – Making sense of this unique investment environment

Following the US election, we have seen bond rates continuing to increase, a stronger US dollar, firmer commodity prices, and a US stock market at all-time highs. Is optimism around the US President-elect’s fiscal expansion masking the true deflationary picture?

Japan’s “Show Me the Money” Corporate Governance: 3Q update

Given the release of the third quarter data, we update our decade-long theme about improving corporate governance in Japan.

Asian Equity Monthly Outlook - November 2016

Asia ex-Japan equities returned -1.5% in US Dollar (USD) terms, outperforming the MSCI World which declined by 1.9%.

Asian Fixed Income Monthly Outlook - November 2016

USTs ended lower in October. Better US economic data and a hawkish statement from the Federal Open Market Committee (FOMC) bolstered expectations of a December interest rate hike.

Populism and Strongman Rule - Is Duterte a role model for ASEAN?

Our Senior Portfolio Manager for ASEAN equities reviews the trend towards Strongman rule in ASEAN.

Earnings recovery is much more achievable in EM Asia than LatAm or EMEA

Our Multi-Asset portfolio manager based in Singapore reviews the prospects for profit margin expansion in the three main Emerging Market regions.

ASEAN Equity Outlook - October 2016

"Find growth and you will find performance" was our Asian Equity investment mantra in early 2016 as the world grappled with slowing growth and lethargy with monetary experimentaton in low and depressed interest rates.

Asian Equity Monthly Outlook - October 2016

Asia ex-Japan equities rose in September, returning 1.6% in US Dollar (USD) terms and outperforming both the MSCI World and MSCI Emerging Markets indices.

Asian Fixed Income Monthly Outlook - October 2016

USTs ended September mixed. While the Federal Reserve left interest rates unchanged and the Bank of Japan reinforced commitment to monetary easing, the ECB's lack of new stimulus disappointed the market.

Interpreting Signals in Unprecedented Times - Japan Equity Market Outlook

No turning back — 2% inflation target not only intact but enhanced with a new “inflation overshooting commitment”

Will Japan Exit the UK?

Our UK expert on BREXIT and our chief global strategist respond to Japan’s concern about its investments in the UK.

More Radical Central Bank Policies and Implications for Stock Picking

Given how important central bank policies are for the pricing of assets, our focus has to be on what they do next. If debt monetisation were to occur, it would have significant implications for equity investing.

Asian Equity Monthly Outlook - September 2016

Asia ex-Japan equities extended its upward momentum in August, returning 3.4% in US Dollar (USD) terms and outperforming MSCI World by 3.3%.

Asian Fixed Income Monthly Outlook - September 2016

USTs ended marginally lower in August as the market adjusted to the possibility of a Fed rate hike, buoyed by sustained resilience in the labour market.

Japan’s “Show Me the Money” Corporate Governance

Given the release of the second quarter data, we update our decade-long theme about improving corporate governance in Japan.

Hitting the Mark: Can Third Arrow Reforms Benefit Investors?

Japan is a consensus-driven culture and improved corporate governance is now the consensus. There are clear signs that many companies are moving towards more shareholder-oriented management.

Asian Equity Monthly Outlook - August 2016

Asia ex Japan equities rose by 4.8% in USD terms in July, outpacing global equities. Hopes for monetary and fiscal stimulus led to strong buying of Asian equities.

Asian Fixed Income Monthly Outlook - August 2016

US Treasury (UST) yields ended July mixed: yields of shorter maturities climbed, whilse those of longer maturities fell.

Fintech – Disruptor or Saviour?

Our expert on Asian financials describes the exciting technological developments that will change the way we all do business in the future.

Japan's Election: Abe's Continued Focus on the Economy

Our Chief Strategist in Japan shares his views on political landscape and the economy.

Asian Equity Monthly Outlook - July 2016

Asia ex Japan equities rose by 2.7% in USD terms in June, outpacing global equities. The Brexit shock proved short-lived for regional markets as investors started to price in greater monetary and fiscal stimulus across major economies.

Asian Fixed Income Monthly Outlook - July 2016

US Treasury (UST) yields gained in a volatile mon across asset classes. The US Federal Reserve (Fed) scaled back projections for raising interest rates, while the UK voted to leave the EU by a 4% margin, surprising markets.

Abenomics hasn't failed yet, but it does face global headwinds

Many are wondering if it's time to give up on Abenomics. While some of the scepticism is understandable, we believe it is too early to throw in the towel.

Contact Us

For more information on Nikko Asset Management's UCITS or tailored investment mandates, please contact:

Email: EMEAenquiries@nikkoam.com
Tel: +44 (0) 20 7796 9866

Nikko AM has been certified as carbon neutral for the first time, after entering into a carbon offset programme with the UK-based international organisation Carbon Footprint Ltd.

Read the full press release.

We are pleased to be bringing you Nikko AM's 2019 Sustainability Report. In it, you will read about our responsibility as an investment manager and fiduciary that contributes to a sustainable society, considering ESG as a part of long-term investment strategies.

Read the full report.