373. Japan’s new era of innovation

With the appointment of Japan’s first female prime minister and inflation returning after decades of deflation, the country is entering a new era. Baillie Gifford’s Thomas Patchett joins us to discuss how corporate reform, automation, and AI are creating exciting long-term opportunities in Japan’s market. From tightening labour conditions and surging share buybacks, to the rise of companies like SoftBank, Shimano, and Nintendo, Thomas explains why Japan’s transformation is about more than politics, it’s about innovation, efficiency, and renewed profitability.

Please note this interview was recorded prior to Sanae Takaichi’s official election and the subsequent highs of the Japanese stock market. 

What’s covered in this episode: 

• Japan’s new political leadership and market reaction
• Inflation’s surprising benefits for corporate Japan
• Share buybacks and stronger balance sheets
• AI, automation, and robotics driving growth
• Why corporate reform is far from over
• SoftBank, Nintendo, and Shimano case studies
• How demographics may boost productivity
• Where Baillie Gifford sees Japan’s next opportunities

More about this fund: One of the oldest Japan funds in the sector, Baillie Gifford Japanese Fund has delivered outstanding returns in the most difficult market conditions. The fund is managed by a large team, based in Edinburgh, and invests in growing Japanese businesses that deliver consistently strong returns to shareholders.

Learn more on fundcalibre.com

Please remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.