Overlooked value stocks in Japan are 'active investment paradise'

Japanese equities reached another significant milestone in March 2024, when the combined market capitalisation of Tokyo-listed stocks hit quadrillion territory—1,000 trillion yen—for the first time. Yet despite the overall market surge, a substantial number of Japanese value stocks remain underpriced, particularly within the small and mid-cap sections of the market and are still trading below their book value. This is an exciting opportunity for active managers, according to Nikko AM, who has called the Japanese equity market "an active investment paradise". Read on to find out more.