Don't write off Japan's equity story as the BOJ turns hawkish: CIO

• Japan's equity markets are expected to absorb higher interest rates and exchange rate fluctuations, with a strong long-term investment case due to rising earnings and margins.
• Forex intervention in the USD/JPY pair can buy time but doesn't fix fundamentals; a sustained yen appreciation requires lower global yields or a shift in Japanese pension fund asset allocation.
• South Korea's KOSPI is seen as a bullish structural setup, with the AI capex cycle intact and driving earnings, despite tactical caution due to recent leverage unwinding and valuation overhangs.

Uday Vikram of Klay Group discusses the investment outlook for Japanese and South Korean equity markets. He believes Japan's long-term equity story remains strong despite potential short-term yen volatility. For South Korea, he sees a bullish structural setup driven by the AI capex cycle, suggesting current consolidation is a buying opportunity.