Lion Global Investors

Lion Global InvestorsEquities

2025 Japan Market Outlook

LionGlobal Investors' Head of Japanese Equities argues that Japan's stock market is undergoing a structural shift from an earnings-driven to a returns-driven market, catalysed by the Tokyo Stock Exchange's 2023 push for improved capital efficiency and corporate governance. The piece highlights rising dividends, share buybacks, asset disposals, and growing activist investor pressure as self-reinforcing drivers that are attracting longer-term capital and improving risk-return dynamics.