Recruit and Round One have been identified as Japanese companies with high US exposure that are attracting attention as US rates rise, while market focus has shifted against the backdrop of the FOMC's rate-hike decision and the Bank of Japan's policy developments.
As the US rate hike was decided unanimously and expectations spread that the strength of the US economy had been reaffirmed, analysts have suggested that demand could expand for Recruit Holdings and Round One as Japanese companies with a high share of sales in the US market. This has drawn attention to companies that can capture demand in the US market, benefiting from personal consumption and employment conditions in the country.
The reasons cited for the dollar's strength and the yen's depreciation even after the Bank of Japan decided to raise its policy rate by 0.25% include the reversal of expectations for a further increase to 0.5%, disagreements among committee members, and slower growth in domestic CPI. Although the yen weakened, expectations for an additional rate hike diminished, and the foreign-exchange market has continued to focus on the interest-rate differential between Japan and the United States.
The program's "Okawa Dojo" segment examined the investment outlook for Mitsubishi UFJ Financial Group, Japan's largest megabank group. Its ability to respond not only to domestic interest rates but also to global demand for funds was identified as a strength. The group was highlighted as having a structure that can increase earnings from its core business, supported by its ability to handle overseas operations and international transactions.
This week, a series of important statistics is scheduled for release, including US new home sales, durable goods orders, and the University of Michigan Consumer Sentiment Index. These indicators are expected to serve as leading indicators for future economic scenarios. Amid movements in long-term interest rates and fluctuations in foreign exchange, an emphasis is being placed on investing in physical assets and maintaining a diversified investment approach as a way of dealing with volatile markets.