Cai Macro: The Japanese stock market still seems attractive.

John Higgins of Capital Economics wrote in a research report that despite a surge of foreign investors into the Japanese stock market in recent months, the market still appears attractive. The chief market economist stated that they are likely encouraged by valuations and the continuously improving economy. The Japanese stock market is also supported by the sustained weakness of the yen. He mentioned that while there are concerns about U.S. tariffs impacting Japanese industries, the latest financial reports of Japanese listed companies are quite favorable. He also said, "Furthermore, the high proportion of tech stocks in the composition benefits the Japanese stock market from the renewed enthusiasm for artificial intelligence."