Aira Securities Public Company Limited presents an investment perspective on the Japanese stock market through fund managers and the Tokyo Stock Exchange, creating new investment opportunities. Thai investors are encouraged to diversify their portfolios and reduce risks by investing in the Japanese stock market, following a strong recovery in Japan's economy and business sector reforms that unlock long-term value.

Mr. Pairoj Leuangthelongphong, CEO of Aira Securities Public Company Limited, shared insights on the Japanese stock market, stating that companies are now being pushed to manage their capital more efficiently due to increased transparency in the business sector and a growing interest from global investors. There is a stronger focus on shareholder returns, and Japanese companies are expected to grow well alongside the economic recovery. Importantly, Japan is reforming its stock market to escape the Value Trap for long-term investments, aiming to restore confidence among both domestic and foreign investors. Factors that make the Japanese stock market attractive are reflected in the views of fund managers and representatives from the Tokyo Stock Exchange (TSE), highlighting why it is an appealing option for Thai investors seeking long-term growth.

Sustainable Growth from Structural Changes

Mr. Naohide Une, founder of Investment Lab, stated that the Japanese stock market is not just a short-term trend but a continuous transformation that creates stability through the adaptation of Japanese companies. Currently, companies are placing greater emphasis on cash reserves, aligning with the focus on shareholders. These changes are a result of governance reforms and initiatives from both the Tokyo Stock Exchange and the Japanese government.

“Foreign investors are beginning to return to Japan as they recognize the potential for profit growth and value expansion. While they may not rush to invest immediately, they can gradually invest through ETFs or choose specific themes such as Digital Transformation (DX) and intellectual property, which are interesting options,” he added.

Unlocking Growth Potential in the Stock Market and Small-Cap Stocks

Mr. Shin Sawada, Senior Director of Investments at Sumitomo Mitsui Trust Asset Management, added that the Japanese capital market is increasingly committed to supporting small companies and those with high growth potential through new measures from the Tokyo Stock Exchange, such as stricter listing criteria and transparent business plans, making Japan an attractive hub for investing in innovative businesses.

“Japan offers a diverse range of investment themes with high potential, from information technology and semiconductors to the transition to environmentally friendly practices (Green Transformation) and health businesses. Additionally, there are opportunities to access unlisted stocks through Crossover funds, which represent another interesting growth avenue,” he noted.

ETFs: A Smart Tool for Accessing the Japanese Capital Market

Regarding the ETF market, which is an accessible investment tool, a representative from the Tokyo Stock Exchange, Ms. Kaori Ohmura, Senior Manager of ETF Market Development at TSE, stated that the ETF market in Japan continues to grow, driven by both foreign and retail investors. ETFs are the most effective tool for accessing Japan's stock and bond markets, with investors able to choose from over 80 diverse ETF products, including industry-specific ETFs, high-dividend ETFs, or thematic investment ETFs that cater to investors' needs and can generate strong long-term returns.

“Structural reforms and a focus on shareholders in Japanese businesses are creating unprecedented opportunities for foreign investors, including Thai investors seeking long-term growth and effective portfolio diversification. Therefore, the Japanese stock market is seen as an opportunity and an investment choice,” he concluded.