Japan is the ultimate Halo trade
Financial Times
February 26, 2026
AI-Generated Deep Dive Summary
Japan's financial markets have undergone a remarkable transformation, shifting from what once seemed like a questionable investment to a renewed sense of promise. The article highlights how Japan has become the "ultimate Halo trade," referring to a strategy where investors bet on a rebound in undervalued or overlooked assets. This shift reflects a growing confidence in Japan's economic prospects, driven by factors such as corporate reforms, a weaker yen, and increased foreign investment.
The perception of Japan as a viable investment destination has been bolstered by several key developments. The country's government has implemented measures to boost economic growth, including aggressive monetary policies and fiscal stimulus. These efforts have contributed to a rise in stock prices, particularly in sectors like technology and manufacturing, which are seen as bellwethers for the broader economy. Additionally, foreign investors have shown renewed interest in Japanese assets, drawn by attractive valuations and the potential for higher returns.
The article underscores why this matters to global business and finance readers. Japan's economic turnaround has far-reaching implications, not just for its domestic markets but also for international trade and investment dynamics. As Japan continues to play a pivotal role in the global economy, its financial trajectory could influence trends across Asia and beyond. For businesses and investors, understanding this shift is crucial for making informed decisions in an interconnected world.
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Originally published on Financial Times on 2/26/2026