Deep Dive: Look for catalysts of outperformance

Strong rally in equities

Andrew Harmstone, head of global balanced risk control, Morgan Stanley Investment Management, dives into Japanese equities.

As prime minister Yoshihide Suga's term as President of Japan's ruling Liberal Democratic Party (LDP) drew to a close, the leadership challenge and his subsequent resignation in early September due to the poor Covid-19 response, triggered a strong rally in Japanese equities. The MSCI Japan index (JPY) surged by 12.5% from the end of August to mid-September on hopes of better policy support and new dynamics. Japan is turning over a new leaf Many saw this as a reduction in political uncertainty, as it looks more likely that the LDP could maintain a majority in the upcoming general elect...