393. From deflation to innovation and the new drivers of Japan

This episode explores the changing investment landscape in Japan and why it may be entering a new era of growth. With deflation ending, wages rising and corporate governance improving, companies are being pushed to deploy capital more efficiently. We’re joined by Alison Henry, investment specialist in Japanese equities from Baillie Gifford, this week who highlights opportunities in mid-cap innovators, the growing influence of artificial intelligence and Japan’s leadership in robotics and automation. We also examine how companies are adapting to technological disruption and the role of global volatility in portfolio decisions, focusing on the Baillie Gifford Japanese fund, as an example. Despite lingering misconceptions, Japan is presented as a market offering compelling valuations, strong earnings growth and significant long-term potential for investors willing to look beyond outdated narratives.What’s covered in this episode: The end of deflation in JapanRising wages and consumptionOngoing corporate governance reformsWhy cash hoarding culture is shiftingThe valuation gap vs US and EuropeMid-cap growth opportunitiesInnovation and disruptive companiesAI adoption in JapanRobotics and automation leadershipDemographics driving technology uptakeBaillie Gifford Japanese fund’s exposure to AI themesSoftBank and AI ecosystemManaging geopolitical volatilityPopular misconceptions about JapanLearn more on fundcalibre.comPlease remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.