Japan looks to have emerged from its tariffs negotiations with the US in relatively good shape. According to Japanese trade negotiators, the US has guaranteed Japan will always receive the lowest tariffs rate on chips and pharmaceuticals that America negotiates.
On top of that, the US is cutting rates on Japanese cars and other goods in return for a $550bn Japanese investment package which will also include loans. Certainly Donald Trump seems to be upbeat on the deal, calling it “the largest trade deal in history.”
It is certainly significant, as the agreement will help to regulate ongoing trade between the world’s largest and fourth largest economies. Japanese investors had been worrying about the implications of higher tariffs and the possibility that they could even push Japan into recession.
The Nikkei 225 index finished July up 2.61% and is still up a respectable 13.6% for the last 12 months. In this article we look at five stocks in Tokyo investors should be watching in the wake of the tariffs deal, as investment sentiment improves.
#1. Anycolor [5032]
Anycolor has put in some great Q1 numbers and this has helped its stock to continue on a very positive momentum run, which has seen a 12 month gain of 88%. This company is well worth a look and could surprise further to the upside we think. Anycolor is riding the wave of popularity for Vtubers, online entertainers who use virtual avatars instead of a real face to create content. The Vtuber phenonmenon is now no longer restricted to Japan and is seeing increasing uptake in Asia and other key markets. Anycolor is a potentially very exciting media play to watch.
#2. Chiyoda Corp [6366]
Shares in Chiyoda Corp are up over 16% in 12 months, beating the index, but still looking relatively rangebound. The shares relatively cheap with a PE of just over 13x at time of writing. Chiyoda Corp is a traditional Japanese integrated engineering business which also stretches to activities in the oil and gas sector, where it has been involved in both active exploration and investment. June numbers saw Chiyoda report 2.2% growth in revenue and a transition from a loss per share in the same quarter last year to a profit per share in the current quarter.
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AloJapan.com