Chiwoong Lee and Sho Nakazawa, economists at Morgan Stanley MAFG Securities, discuss their observations from the Morgan Stanley Japan Summit in Tokyo. Client concerns centered on the uncertainty surrounding U.S. trade policy and investment strategies related to Japanese governance reforms, particularly the removal of parent-child listings. They analyze the negative impact of U.S. tariffs on the global and Japanese economies, focusing on the effects on investment, inflation, and the Federal Reserve's potential rate adjustments. The discussion also covers the Japanese stock market's reaction to tariffs, the revision of the TOPIX target, the impact of the dollar-yen exchange rate, and the complexities of the Japan-China-U.S. trade relationship.
