Singapore's sovereign wealth fund GIC is expressing strong confidence in the Japanese stock market, citing robust fundamentals, governance improvements, and attractive valuations compared to other developed markets, according to CEO Lim Chow Kiat [1]. Lim highlighted that Japanese companies have made significant strides in capital efficiency and corporate reforms, which has led to increased shareholder returns and attracted more long-term global investors like GIC [1].
Lim noted that the current market environment is favorable for Japanese equities, with low interest rates and a weak yen making Japanese assets particularly appealing to foreign investors [1]. These factors have contributed to recent highs in Japanese stock indices, with both the Nikkei 225 and TOPIX outperforming regional peers in the first quarter of 2026 [1]. The market rally is supported by robust earnings and steady inflows from both domestic and overseas investors [1].
Amid rising political risks and volatility in the U.S., Lim emphasized that Japanese stocks are increasingly seen as a diversification opportunity for global investors [1]. He pointed to Japan's stability and unique growth drivers, such as innovation in technology and automation, as key attractions [1]. GIC's strategy in Japan includes not only investing in listed equities but also exploring private market opportunities and partnerships to support Japanese companies' international expansion and technological advancement [1].
Lim concluded by reiterating GIC's long-term commitment to the Japanese market, expressing confidence that the rally in Japanese equities has further to go, provided that corporate reforms continue and global conditions remain supportive [1].
CONCLUSION
GIC's leadership sees significant upside potential in Japanese equities, driven by ongoing corporate reforms, strong fundamentals, and favorable market conditions. The fund is committed to deepening its investments and partnerships in Japan, viewing the market as a key diversification opportunity amid global uncertainties.