Following yen-buying intervention by the Japanese and US governments, USD/JPY moved higher for the yen, falling temporarily from the ¥163 range to the ¥155 range before turning back toward yen weakness. Sakamoto Shintaro (坂本慎太郎), known as “B-Comi” and an investor with assets exceeding ¥150 million, examines the investment appeal of strong-yen beneficiary stocks and their outlook.
The market was driven by yen-buying intervention by the Japanese and US governments, reportedly the first such intervention in 28 years. USD/JPY temporarily moved in favor of the yen after the intervention, but the pair is said to have recovered its yen-weakening trend at present. Against this backdrop, Sakamoto Shintaro (坂本慎太郎) expects the yen-weakening trend to remain unchanged over the medium to long term.
Sakamoto sees the Japan-US interest-rate differential as still wide and believes the Bank of Japan is unlikely to raise rates by 0.5% at its next policy meeting, with 0.25% increases more likely. These factors point to market conditions that include yen weakness for the time being, although he also believes that currency intervention could be carried out again.
As investments, strong-yen beneficiary stocks may continue to perform, it is noted. Sakamoto focuses on stocks such as Nitori Holdings that benefit from a stronger yen, and believes that if the yen-weakening trend persists, companies that import products and sell them domestically will enjoy a short-term tailwind.
Specific examples and further details on strong-yen beneficiary stocks are explained in greater depth in a related article. Sakamoto offers his views as an individual investor and comments that investors should closely monitor currency levels and stock prices, including whether further intervention will occur and how long stronger-yen levels will persist.