Wall Street Week Fan Favorite: Japan’s New Horizon
Apr 3, 2026
Hiroki Totoki, Sony CEO reshaping the company around gaming and entertainment. Hiromi Yamaji, Japan Exchange Group leader driving market and governance reforms. Marc Rowan, Apollo CEO focused on long-dated private capital. They discuss Japan’s post‑stagnation turning point. Topics: governance reforms, private capital’s role, reflation, demographics, huge infrastructure and AI investment needs.
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Reflation Is Unlocking Japan's Sidelines Cash
- Japan is shifting from decades of deflation to a reflationary environment with ~3% inflation and higher rates.
- Marc Rowan says that forces like generational corporate governance change and rising inflation are unlocking capital previously parked in cash and JGBs.
TSE Reforms Force Management Mindset Shifts
- Tokyo Stock Exchange reforms are pressuring companies to improve capital efficiency and explain low PBRs.
- Hiromi Yamaji emphasizes mindset change over metrics like PBR and increased scrutiny from global investors.
Aging Population Drives Massive Productivity Investment
- Japan's demographic decline forces investment in automation, AI, and productivity rather than relying solely on expanded labor.
- Speakers note capex needs across manufacturing, energy, AI/data and infrastructure measured in the trillions.