Japanese equities rose during the quarter due to a confluence of factors including the Bank of Japan (BoJ) raising interest rates to 0.75%, corporate governance reforms and continued enthusiasm around the global AI boom. The BoJ’s interest rate hike puts it at its highest level in 30 years and it signaled that further increases are on the horizon as it closely monitors wage growth and inflation. Although we are not macro experts, we retain our view that Japan has exited its multi-decade period of deflation, and interest rates will normalize over the medium term.
Past performance is no guarantee of future results.
The specific securities identified and described in this report do not represent all the securities purchased, sold, or recommended to advisory clients. There is no assurance that any securities discussed herein will remain in an account’s portfolio at the time one receives this report or that securities sold have not been repurchased. It should not be assumed that any of the securities, transactions, or holdings discussed herein were or will prove to be profitable. Holdings are representative of Harris Associates L.P.’s Japan Unhedged composite as of 12/31/2025.
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