Insights

Investment Insights by our experts and thought leaders

2022 Japan Equity Outlook: ESG to bring Japan to the fore

ESG initiatives are expected to become ever more important for companies and investors around the world in 2022. We expect many Japanese companies to come to the fore amid this global shift towards ESG, with enhancements in ESG disclosures shedding light on their value creation opportunities amid the current drive towards decarbonisation.

2022 Singapore Equity Outlook: Focusing on sustainable growth

The Singapore economy is on a road to recovery. Although the economy has already rebounded sharply in 2021, we expect the recovery theme to remain intact and continue supporting the Singapore economy in 2022. We see a broadening of growth within Singapore’s key economic engines in 2022, with a sharper recovery expected in the services sector as the economy reopens.

2022 China Equity Outlook: Focusing on new market leaders

Amid a flurry of headlines, investors may have largely overlooked the significant number of recent positive developments in China, such as initiatives directed towards ambitious renewables targets, the continued opening up of the financial sectors and support for a significant number of industries including AI and big data. We believe these areas could become the new leaders of China’s capital markets, representing investment themes for the next several decades.

2022 Asian Fixed Income and FX Outlook: Regional recovery expected

The economic recovery in Asia ex-China is likely to improve significantly in 2022 as regulations are eased, borders are reopened and vaccination rates increase. We anticipate these developments to boost private sector confidence, providing an important tailwind for Asian ex-China growth in 2022.

2022 Global Fixed Income Outlook

We present our 2022 outlook for core markets, emerging markets and global credit.

Asian stocks fell in November on concerns that the spread of the new Omicron COVID-19 variant could derail global reopening plans and delay economic recoveries.

2022 Asian Credit Outlook: Growth momentum seen reviving

The macro backdrop and robust corporate credit fundamentals remain supportive of Asia credit spreads. As such, we expect growth momentum of many Asian economies to gather pace heading into 2022. Overall corporate credit fundamentals are expected to remain robust, with earnings growth staying strong—albeit at a slightly slower pace compared to 2021.

The global economy should match the consensus for strong growth, thanks to vaccinations, continued fiscal stimulus, acceptable global geopolitical conditions, and continued low interest rates despite increasingly hawkish central banks. Such, via increased corporate profits, should allow equity markets to perform very well ahead, with impressive returns in each region, particularly in Japan.

Navigating Japan Equities: Monthly Insights from Tokyo (December 2021)

We assess Japan PM Kishida’s record stimulus package and its potential implications for the pandemic-hit economy; we also gauge what the new political administration could mean for the Japanese capital markets currently undergoing significant changes.

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

The just released 3Q CY21 data on aggregate corporate profits in Japan was very positive, as although for the single quarter, the overall corporate recurring pre-tax profit margin declined from the 2Q, as it does routinely for this non-seasonally adjusted data.

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Nikko AM works with the UK-based international organisation Carbon Footprint Ltd. to offset carbon emissions through offset programmes, and has been certified as carbon neutral since 2018.