{"id":42604,"date":"2025-09-24T18:08:55","date_gmt":"2025-09-24T10:08:55","guid":{"rendered":"https:\/\/www.phillipnova.com.sg\/?post_type=market_trends&p=42604"},"modified":"2025-09-24T18:48:08","modified_gmt":"2025-09-24T10:48:08","slug":"can-japanese-stocks-maintain-the-momentum-for-q4-2025","status":"publish","type":"market_trends","link":"https:\/\/www.phillipnova.com.sg\/cn\/market_trends\/can-japanese-stocks-maintain-the-momentum-for-q4-2025\/","title":{"rendered":"Can Japan Stocks Maintain The Momentum For Q4 2025?"},"content":{"rendered":"
\n\t\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t\t\t

<\/span><\/p>\n

Phillip Nova\u9ad8\u7ea7\u6295\u8d44\u5206\u6790\u5e08\u6797\u77e5\u9716\u5148\u751f<\/p>\n

\u00a0<\/p>\n

As of 17 September (12:58 SGT), the Nikkei 225 index is up 13.70% YTD. In this article, we will discuss whether the Nikkei 225 can maintain this momentum and what are some of the key events to look out for.<\/strong><\/p>\n

\u00a0<\/p>\n

\"\"
Source: Phillip Nova, Bloomberg, 17 September<\/figcaption><\/figure>\n

\u00a0<\/p>\n

Our data shows that in terms of sectors, Communication Services and Utilities performed the best YTD. However, due to classification methodologies, we note that Communication Services includes non-telco companies like Nintendo, Softbank, Konami, and Nexon. From a factor view, we see that Value stocks outperformed.<\/p>\n

\u00a0<\/p>\n

The rally in the Nikkei 225 is inline with our views, as we previously predicted \u7acb\u5373\u5f00\u6237\u3002<\/a>. The catalysts mentioned in the articles remain relevant today. Namely, this include:<\/p>\n

\u00a0<\/p>\n

    \n
  1. Trade Deal with US, lowered car duties to 15%<\/li>\n
  2. Strong corporate earnings and revised GDP report that came in stronger than expected<\/li>\n
  3. Improving corporate governance, attractive valuations, and increasing cash flow to shareholders (dividends and buybacks).<\/li>\n<\/ol>\n

    \u00a0<\/p>\n

    \u00a0<\/p>\n

    \"\"
    Source: Phillip Nova, Bloomberg, 17 September<\/figcaption><\/figure>\n

    \u00a0<\/p>\n

    \"\"
    Source: Bloomberg, 17 September<\/figcaption><\/figure>\n

    \u00a0<\/p>\n

    Crucially, one major development since our previous article is the resignation of PM Ishiba.<\/strong> The incumbent Liberal Democratic Party (LDP) will select a new president on 4 October. The Yen fell while the Nikkei 225 rose on the news, with contenders offering sharply differing visions for the economy, raising the prospects of aggressive fiscal expansion at a time when inflation is returning. Nevertheless, the ruling LDP party lacks a majority in both houses of parliament, <\/strong>and even the new LDP leader voted in on 4 Oct may fail to gain enough support in parliament.<\/p>\n

    \u00a0<\/p>\n

    On the day of the announcement, we note that export-oriented JP shares benefitted from the weaker yen:<\/p>\n

    \u00a0<\/p>\n