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Japan’s place in a (re)evolving global capital market
In global markets, Japan’s traditional role as a diversifier and quasi-safe haven is now being complemented by a newer view that corporate reform could drive earnings growth alongside a potential re-rating.
A key engine of this is the cultural paradigm shift underway in the boardrooms of corporate Japan. With the generation of CEOs who stewarded their companies through the barren decades of the 1990s and 2000s now retiring, a new crop of younger managers more geared towards innovation, risk-taking and growth are taking over.
We have previously discussed this trend, and it is part of why we believe there is still so much fuel to add to the fire that has been ignited under the Japanese market.
While allocators appeared in early 2026 to be actively moving capital out of the US and into other markets, as they had the previous year, the picture is less clear today. As such, the so-called Great Rotation may still be turning, potentially pointing back towards sustained inflows into US markets. In fact, the phrase ‘Great Rotation’ is beginning to resemble how the concept of ‘revolution’ was originally understood.
20th-century political theorist Hannah Arendt observed that the original meaning of ‘revolution’ contrasted sharply with its modern usage. It originally referred to something – commonly a celestial body – completing a 360-degree cycle and returning to its starting point.
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Richard HAXE
Managing Director, Head of Business Development
Alex BARRY
Executive Director, Head of Distribution - UK and Ireland
Chloé CHOQUIN
Director, Business Development & Client Relations
Thomas CARTWRIGHT
Director, Business Development & Client Relations
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