JPMorgan-Japan Equity Strategy Japanese equities following FOMC Ongo...-108102089

JPMORGANGlobalMarketsStrategy07May2024JapanEquityStrategyJapaneseequitiesfollowingFOMC:OngoingannouncementofinitiativestoboostRoEwithresultsreportsTheBoJtooknoactiontocounteryenweaknessatitsAprilmeeting,theMayFOMCEquityStrategymeetingwasdovish,andAprilUSemploymentdatawasweak,soexpectationsforFRBratecutsbeforetheyear-endhavegrownagain.TheheavydownwardpressureRieNishiharaAContheequitymarketduetotheyen’srapiddepreciationhaseasedfornowgivenalsothatsomemarketparticipantsseemtobeexpectingasecondroundofforex(81-3)6736-8629interventionbytheJapanesegovernment.Evenso,theyenremainsweakatthe¥153–rie.nishihara@jpmorgan.com155/$level,andisatalevelfriendlyforequitypricesgivenlikelygrowthinbothrealJPMorganSecuritiesJapanCo.,Ltd.wagesandconsumption,alongwithcorporateearnings.Theresultsseasonhasnowstartedinfull,andtherehavebeenanumberofcompaniesannouncingmeasurestoYongGuo,CFAaccelerateimprovementincapitalefficiency,suchasincreasestoRoEtargetsandtoshareholderreturns,includingHitachi,Komatsu,WestJapanRailway,andMitsui&(81-3)6736-8623Co.yong.guo@jpmorgan.comJPMorganSecuritiesJapanCo.,Ltd.SummaryMansiDas•Easingindownwardpressureonyenandreductioninforexriskforequity(91)2261573343marketafterFOMC,employmentstatisticsmansi.das@jpmchase.comJ.P.MorganIndiaPrivateLimited•OngoingannouncementsofmeasurestoboostRoEincludingincreasingsha...