Trump’s Election Lead Sparks Hunt for Japan Stocks
- Topix Index outperformed S&P 500 after 2016 presidential poll
- Weak yen, rotation out of Chinese stocks to boost Japan shares
WATCH: Standard Chartered’s Daniel Lam says investors are positioning for a “more likely Trump victory,” which means dollar-yen will trend higher.
Source: BloombergDonald Trump’s growing lead in the US presidential race has sparked a rush to identify the key winning trades in global markets. History suggests that Japanese stocks are a good bet.
Japan’s Topix Index gained almost 30% in dollar terms in the one-year period after the 2016 US presidential election which Trump won, beating the S&P 500 and the MSCI World Index which each rose roughly 20%. Strategists say the boost from a weak yen will give Japanese shares a leg up, just as funds seek alternatives to Chinese equities in anticipation of a tougher Trump stance toward Beijing.