Japanese Equities: A Practical Guide to Investing in the Nikkei 1st Edition

Valuable information and recent case studies on how the Japanese equity market works and what drives it — essential for anyone aiming to successfully invest in the market

The Japanese equity market, the second largest equity market in the world, responds to global economic conditions more sensitively than other developed markets and offers substantial money-making opportunities for those who know how to correctly time their trades. The cyclical nature of the market, along with its reasonably predictable reactions to global economic conditions, makes proper timing relatively easy to recognize. No one knows this better than author Michiro Naito, a former equity derivatives/quantitative strategist for J.P. Morgan Securities Japan. Combining in-depth knowledge and accessible writing, the author explains the inner workings of the Nikkei and helps investors understand the market's idiosyncrasies to take the fullest advantage of profit-making opportunities.

Through case studies, this book examines the various indicators and indices in their historical contexts and provides a quantitative approach supported by solid backtests. Identifying historical patterns helps predict the economy which, in turn, helps predict the general direction of the equity market. However, the Nikkei is particularly susceptible to short-term fluctuations, often caused by current events around the globe. Understanding how factors such as political disruptions and policy decisions influence the market is essential for forecasting short-term moves. Factors such as the re-election of Prime Minister Shinzo Abe, the trade policies of Donald Trump (the US-China trade war) and the difference in monetary policies between the Bank of Japan and the Fed, amongst others, can indicate accurate timing in the Nikkei. The goal of this book is to help both potential and professional investors gain a better understanding of the Nikkei and acquire the knowledge required to identify the cyclical trends and repeating patterns in order to successfully invest in the Japanese equity market.

Valuable information and recent case studies on how the Japanese equity market works and what drives it ― essential for anyone aiming to successfully invest in the market

The Japanese equity market, the second largest equity market in the world, responds to global economic conditions more sensitively than other developed markets and offers substantial money-making opportunities for those who know how to correctly time their trades. The cyclical nature of the market, along with its reasonably predictable reactions to global economic conditions, makes proper timing relatively easy to recognize. No one knows this better than author Michiro Naito, a former equity derivatives/quantitative strategist for J.P. Morgan Securities Japan. Combining in-depth knowledge and accessible writing, the author explains the inner workings of the Nikkei and helps investors understand the market’s idiosyncrasies to take the fullest advantage of profit-making opportunities.

Through case studies, this book examines the various indicators and indices in their historical contexts and provides a quantitative approach supported by solid backtests. Identifying historical patterns helps predict the economy which, in turn, helps predict the general direction of the equity market. However, the Nikkei is particularly susceptible to short-term fluctuations, often caused by current events around the globe. Understanding how factors such as political disruptions and policy decisions influence the market is essential for forecasting short-term moves. Factors such as the re-election of Prime Minister Shinzo Abe, the trade policies of Donald Trump (the US-China trade war) and the difference in monetary policies between the Bank of Japan and the Fed, amongst others, can indicate accurate timing in the Nikkei. The goal of this book is to help both potential and professional investors gain a better understanding of the Nikkei and acquire the knowledge required to identify the cyclical trends and repeating patterns in order to successfully invest in the Japanese equity market.