Is the New Plaza Accord the Rebirth of 'Japan as No.1'? Predicting the Return of the Nikkei 225’s Golden Era After the Crash | Market Commentary, April 12, 2025

Following the Trump Tariff Crash, we dare to envision a scenario for the Nikkei's golden age to return.Could a "New Plaza Accord" spark an equity story for Japanese stocks reminiscent of the "Japan as No.1" era?Japanese multinationals with global footprints remain resilient even amid yen appreciation, while domestic demand-driven firms may benefit from the stronger currency through improved earnings.Currency strength also helps tame inflation, while pre-upper house election stimulus measures—such as cash handouts and tax breaks—could support weakened consumer sentiment.Structural factors like wage pressures and the acceleration of the inheritance cycle may further boost consumption.With the Bank of Japan gradually tightening, we explore the potential for a rare convergence of a stronger yen, rising equities, and firming bonds.___I am Japanese.This is English version.