UBS sees gains for Japan value stocks

Value stocks are expected to rally as the economy may post 3% to 4% nominal growth next year and the Tokyo Stock Exchange pushes for better returns on equity. — Reuters

TOKYO: UBS Global Wealth Management expects Japan’s cheaply valued stocks to extend their outperformance into 2024 amid a revival in domestic economic growth and gradual monetary policy tightening.

Value stocks will rally as the economy may post 3% to 4% nominal growth next year and the Tokyo Stock Exchange pushes for better returns on equity, said Min Lan Tan, who leads the Asia-Pacific chief investment office at one of the world’s largest wealth managers.