Bloomberg Daybreak: Asia Edition Asia Stocks Post Modest Gain, Weak Yen Fuels Japan Rally
Jan 14, 2026
Abhishek Vishnoi, a Senior Reporter for Asia Equities at Bloomberg, analyzes the modest gains in Asian markets and the factors boosting Japanese stocks, including yen weakness and a potential snap election. Zuhair Khan, a Senior Portfolio Manager at UBP, discusses the implications of inflation on Japan's economy and how governance reforms could unlock further market upside. They also touch on the undervaluation of the yen and investor flows, alongside cautionary notes on certain sectors that may be overvalued.
AI Snips
Chapters
Transcript
Episode notes
Yen Weakness Fuels Japan Rally
- A weaker yen (around 160) is lifting Japanese equities as investors price in fiscal spending and corporate reforms.
- Abhishek Vishnoi says yen weakness plus hawkish Fed and oil shocks form a "triple whammy" driving markets.
AI And Chips Drive Regional Earnings
- AI and chip-related names led Asian equity gains in 2025 and remain the primary growth driver.
- Analysts are raising 12-month forward earnings estimates especially for Korea and Taiwan, per Abhishek Vishnoi.
Political Risk Could Mean More Fed Cuts
- Markets may underprice potential extra Fed cuts if political pressure increases under President Trump.
- Abhishek Vishnoi warns more cuts would weaken the dollar and lift many risk assets globally.