Bloomberg Daybreak: Asia Edition Markets React to Takaichi's Historic Supermajority
Feb 9, 2026
Greg Halter, Director of Research at Carnegie Investment Counsel, offers U.S. market and macro perspective. Shintaro Takauchi, portfolio manager at Matthews Asia, explains Japan’s historic supermajority and market implications. They discuss fiscal stimulus, yen range and bond yields, AI-driven tech momentum, valuations and earnings, defense spending choices, and risks of concentrated political power.
AI Snips
Chapters
Transcript
Episode notes
Momentum Lifts Valuations, Governance Helps
- AI and defense themes are trading at very high valuations driven by momentum and thematic demand.
- Improved corporate governance and rising returns on equity are supporting broader valuation expansion in Japan.
Consider Remaining Upside In Japan Equities
- Consider Japan equities despite high-end valuations because earnings revisions and top-line growth are rising.
- Note global investors remain underweight Japan, leaving room for further allocation flows.
Be Selective On Defense And Momentum Names
- Allocate selectively into defense names but watch valuations and focus on lower-priced growth areas.
- Avoid chasing the most expensive momentum winners; wait for valuation gaps to narrow.