Japanese Market Research Articles

Beyond Winners and Losers: Median Sector Rotation in the Japanese Equity Market

This study evaluates the effectiveness of a median sector rotation strategy within the Nikkei 500 component sectors, building on prior research that demonstrated superior risk-adjusted returns by selecting midperforming assets. Unlike traditional momentum-based investing, which focuses on winners or losers, the median strategy systematically reallocates capital to sectors with moderate past performance, reducing volatility while maintaining steady growth. Our findings reveal that quarterly and semi-annual rebalancing optimize returns in Japan, differing from U.S.-based studies where monthly rebalancing was more effective. Unlike buy-and-hold investing, the median strategy tends to outperforms total return and drawdown reduction, making it a viable alternative for public investors. By applying structured sector rotation rather than passive indexing, investors gain exposure to Japan’s strongest industries while mitigating downside risk. The results highlight the strategy’s adaptability across markets and suggest broader applications in global equities, fixed income, and multi-asset portfolios for enhanced portfolio resilience.

Investments transformation and stock price behavior: empirical evidence from the Japanese firms

PurposeThis study investigates whether investment dynamics are associated with equity behavior. We analyze and evaluate the associations, considering both the risk and return dimensions.Design/methodology/approachThis study uses a panel dataset consisting of 172 Japanese firms’ annual data from 2010 to 2023. We implement panel data analysis, either fixed- or random-effects, to examine the association between investment transformation and the equity risk-return parameters. Both systematic and nonsystematic risks are included in the extended risk parameters. We also perform subsample analysis by comparing the years before and after the COVID-19 pandemic and further evaluate the results of the lagged variable up to three years.FindingsWe find that a firm’s working capital management is associated with better current risk-adjusted returns. We further find that equity mispricing does occur in Japanese firms and equity markets. We elaborate that this mispricing is also related to risk reduction and can explain the Japanese financial market’s more risk-averse preferences. Our findings about mispricing are associated with investment dynamics and strongly related to future one- and two-year-ahead equity behavior. Our further snowball effect reveals that the results are consistent for lagged one-year, contradictory for lagged two-year and somewhat similar for lagged three-year variables. We also observe higher uncertainties in the Japanese firms and financial markets after the pandemic period.Originality/valueWe extend previous models in the current literature by including equity risk parameters. A subsample analysis is performed to more deeply examine the uniqueness of Japanese firms, especially during the pandemic period. We further analyze the associations between investment dynamics and equity behavior for longer lag periods.

Market Access Under a Dynamic Safeguard Mechanism: Evidence From the United States–Japan Trade Agreement

ABSTRACTAccess to the Japanese beef market has historically been highly restricted via import quotas and prohibitive tariffs. On January 1, 2020, the United States and Japan implemented the United States–Japan Trade Agreement (USJTA), which aimed to enhance market access by reducing tariffs on a variety of commodities, including beef and beef products. Less than 18 months after USJTA implementation, Japan re‐instituted high tariffs on U.S. beef after agreement safeguard levels were surpassed. In June 2022, USJTA safeguards were revised to rely on a three‐trigger mechanism. We nest a multitreatment‐period difference‐in‐difference design inside an econometric gravity model to investigate the impacts of these institutional regime changes on United States–Japan beef trade. We find that the USJTA substantially expanded access to the Japanese market for U.S. beef—even in light of the safeguard tariffs. In aggregate, the agreement generates an additional $210 million in annual exports for the U.S. beef industry. Even amidst changing attitudes towards the economic appeal of global market integration, incremental efforts to that end can have meaningful impacts for affected stakeholders.

Relating the Canadian and Japanese beef grading sites.

Relating the Canadian and Japanese beef grading sites.

Reconstructing Identities amid Cold War and Postcolonial Politics

This article examines the role Zainichi Korean (literally, “Koreans in Japan”) scientists and engineers played in the social and political dynamics of scientific collaboration between South Korea and Japan from the early 1950s to the early 1970s. It argues that the contributions of Zainichi researchers have often been overlooked in the history of South Korean science due to the complexity of their identity politics for South Korea, as they sought to navigate the political risks caused by the Cold War and postcolonial context. Facing ethnic discrimination in the Japanese labor market from the late 1950s onward, many Zainichi Koreans with science and engineering degrees sought jobs in South Korea. However, their ties to pro–North Korean organizations raised suspicions about their loyalty. Further, they were often seen as representatives of new Japanese economic and cultural imperialism, particularly after the normalization of relations between Japan and South Korea in 1965. To navigate these challenges, Zainichi researchers often downplayed their “Zainichi” identity, presenting themselves as “Korean students abroad.” Those lacking the necessary cultural capital to do so faced greater difficulties adapting to South Korea, with their contributions frequently ignored due to fears of potential links to North Korea. By highlighting the New Korea Academic Research Society and two Zainichi researchers, Park Bong-ryol (1926–2001) and Kim Chul-woo (1926–2013), this article sheds light on the self-fashioning strategies used by Zainichi scientists and the political factors that led to their marginalization in the history of scientific interactions between Japan and South Korea.

Quantification of Flavors, Volatile Organic Compounds, Tobacco Markers, and Tobacco-Specific Nitrosamines in Heated Tobacco Products and Their Mainstream Aerosol.

As an alternative to cigarettes, the sales of heated tobacco products (HTPs) have increased in the Japanese market. This may contribute to improving a smoker's health because the levels of most toxic compounds─such as tobacco-specific nitrosamines (TSNAs) and volatile organic compounds (VOCs)─in the mainstream of HTPs are lower than those in cigarettes. However, the risks associated with the flavors that provide attractive tastes to HTPs remain unknown. We demonstrated that compared with cigarettes, HTPs reduce the health risks associated with VOCs and TSNAs while achieving comparable nicotine and flavor levels. The VOC and TSNA concentrations in the mainstream aerosol of HTPs were 0.0039 (benzene)-0.53 (acetaldehyde) times lower than those in cigarettes. Using HTPs may still pose adverse noncarcinogenic and carcinogenic effects on human health, as indicated by hazard quotients >1 for acrolein and acetaldehyde, margins of exposure <100 for (R)-(+)-limonene, and cancer risks >1.0 × 10-6 for acetaldehyde. Additionally, the exhalation of mainstream aerosol may increase the indoor acrolein concentration to 0.069 μg m-3, exceeding the reference concentration for acrolein (0.02 μg m-3). Therefore, reducing acrolein concentrations is an effective measure for improving the safety of HTP use.

Macroeconomic facts in the Japanese labor market: survey

Macroeconomic facts in the Japanese labor market: survey

Corrigendum to “Assessing the willingness of residential electricity consumers to adopt demand side management and distributed energy resources: A case study on the Japanese market” [Energy Pol. (137) 111169

Corrigendum to “Assessing the willingness of residential electricity consumers to adopt demand side management and distributed energy resources: A case study on the Japanese market” [Energy Pol. (137) 111169

A comparison of the United Kingdom, Australian and Japanese hangover product market.

The use of products to prevent or reduce alcohol hangovers is increasingly popular. The aim of this study was to evaluate and compare the alcohol hangover product markets of the United Kingdom, Australia and Japan. The website www.Amazon.com was searched, using the terms 'hangover treatment' and 'hangover cure', to identify hangover products sold in the United Kingdom, Australia and Japan. Dosage forms, ingredients and their amounts per serving were recorded and compared between the three countries. The market evaluations for the United Kingdom and Australia each revealed N = 19 hangover products, and 24 hangover products were found for Japan. The products from the three markets were quite distinct, with none of the hangover products being marketed in all three countries. The most popular ingredients in United Kingdom were potassium (63.2%), sodium (57.9%) and vitamin C (52.6%). The most common ingredients in Australia were vitamin B1, vitamin B6, vitamin B12 and sodium (all 47.4%). In Japan, curcumin (45.8%), L-ornithine (29.2%), vitamin C (20.8%) and vitamin B2 (20.8%) were the most popular ingredients. Most popular dosage forms also differed between the countries, with powders being most popular in the United Kingdom (42.1%), tablets in Japan (50.0%), and capsules (31.6%) and drinks (26.3%) in Australia. Both ingredients and dosage forms of hangover products differed between the United Kingdom, Australia and Japan. Products also differed from the United States, illustrating the importance of cross-cultural comparisons. As these are currently lacking, double-blind, placebo-controlled clinical trials are needed to demonstrate the efficacy and safety of marketed hangover products.

Evolving Research and Development Landscape for Rare Diseases: Growing Concerns Over Orphan Drug Lag in Japan.

Patients with rare diseases worldwide face substantial unmet therapeutic needs. In Japan, drug lag-delays in drug approval compared to other countries-has resurfaced as a pressing public health issue. This study analyzes orphan drugs (ODs) approved in the United States (US) from 2005 to 2021, examining OD lag trends, and research and development (R&D) models to streamline OD development in Japan. Despite increased OD approval in the United States since 2018, the number of unapproved ODs in Japan has substantially increased. Although OD lag decreased, it has resurged since 2017. This is largely due to changes in the R&D strategies of pharmaceutical companies, which are driven by the growing presence of US- and Europe-based small- to mid-sized enterprises (SMEs) and the evolving industry landscape. Large foreign pharmaceutical companies have shifted toward a global development strategy for Japan, aiming for more efficient development and competitive advantage. This has been propelled by a move toward in-licensing earlier-stage drug candidates with global exclusivity from SMEs. Japanese pharmaceutical companies have focused on in-licensing late-stage drug candidates for the Japanese market from SMEs without a business presence in Japan, which have not been developed locally, thereby employing a bridging strategy for Japan. With the increase in ODs developed in the United States by these SMEs, this practice has substantially exacerbated the OD lag. As these SMEs are unlikely to enter the Japanese market, it is crucial for Japanese pharmaceutical companies to proactively pursue earlier, more proactive global partnerships with SMEs.

Dam break in Japan’s immigration policy: the 2018 reform in a long-term perspective

Abstract The 2018 reform is a dam break in Japan’s immigration policy. Previously, for decades, the opening of the Japanese labour market for lower-qualified foreign workers was discussed without any comprehensive reform despite far-reaching proposals. This article discusses this change from a persistent standstill to comprehensive reform by analysing comparatively the frames and institutional setting in earlier immigration debates around 1970, around 1990, and around 2005 with the debate in the late 2010s. It argues that the persistent stalemate on the most hotly debated issue of immigration policy was due to the diversity of frames with very different policy implications and an institutional fragmentation in policy-making without any pivotal policy entrepreneur. The comprehensive reform of 2018 is the result of a window of opportunity by the conjuncture of a declining security frame as the main counterargument and by the centralization of decision-making in the core executive in the later years of the second term of Prime Minister Abe Shinzō (2012–20) on the level of institutional setting. Abe and his entourage were reluctant policy entrepreneurs who only realized the 2018 reform because of pressure and the absence of any other policy option. Still, they fundamentally changed the framework in Japanese immigration policy.

Hard to Borrow vs. Easy to Borrow: Insights from Japan’s Centralized Lendable Stock Market

This study examines stock borrowing costs in Japan’s centralized lendable stock market, focusing on differences between ‘hard-to-borrow’ and ‘easy-to-borrow’ stocks over six months of daily data. This study employs a comprehensive methodology to examine metrics such as the short interest ratio, borrowing costs, institutional ownership, price-to-book value ratio, and new stock borrowing patterns. Regression models are utilized to explore the relationships between these factors and borrowing costs. The findings reveal that ‘hard-to-borrow’ stocks are associated with higher short interest ratios, borrowing costs, price-to-book ratios, and turnover but exhibit lower institutional ownership compared to ‘easy-to-borrow’ stocks. Notably, institutional ownership negatively correlates with borrowing costs across both categories, while the short interest ratio positively correlates with borrowing costs only for ‘hard-to-borrow’ stocks. Contrary to expectations, ‘hard-to-borrow’ stocks do not underperform despite elevated borrowing expenses, suggesting that these costs do not deter short selling activities in the Japanese market. The findings of this study offer key implications for investors and regulators. For investors, understanding the factors influencing borrowing costs aids in optimizing short-selling strategies. For regulators, the results highlight the role of centralized lendable stock markets in enhancing pricing efficiency without hindering trading activities.

Current understanding and perspectives on growth and long-acting GH therapy in Japan

From the perspective of clinical pediatric endocrinology, progress in molecular biology over the past few decades has improved our understanding of growth physiology. This progress was particularly conspicuous in the early era of Sanger-based sequencing and has continued into the current era of next-generation sequencing. The first half of this review summarizes the current understanding about growth. The latter half discusses the development of long-acting GH (LAGH), an important, recent topic in pediatric endocrinology, with a focus on the Japanese market. LAGH is administered weekly over several years in some developed countries as treatment for GH deficiency (GHD). In Japan, somatrogon and somapacitan are available, and lonapegsomatropin has completed a clinical trial. As per recent meta-analyses, these three products were not inferior to conventional, daily GH therapy for short-term growth in pediatric GHD. Although LAGH is promising, some concerns remain. Well-designed clinical research is needed to expand the indications for LAGH to other conditions, such as idiopathic short stature. Finally, future research on orally administered agents may open new avenues for the treatment of short stature.

Exploring environmental and managerial impacts of crude oil volatility on QUAD financial markets: Insights into dynamic connectedness.

Exploring environmental and managerial impacts of crude oil volatility on QUAD financial markets: Insights into dynamic connectedness.

Psychological Factors that Influence Behavioral Intentions towards Bottled Green Tea in the Japanese Market

Psychological Factors that Influence Behavioral Intentions towards Bottled Green Tea in the Japanese Market

The Influence of Consumer Privacy Preferences on Personalized Marketing and Multichannel CRM Integration

This paper explores the influence of consumer privacy preferences on personalized marketing and multichannel CRM integration in Japan. In a digital age where data-driven marketing strategies are pivotal, Japanese consumers’ heightened privacy concerns present both challenges and opportunities for businesses seeking to engage with this market. The paper examines the cultural, legal, and technological factors shaping consumer attitudes toward privacy and personalization, focusing on how businesses must navigate these concerns to foster trust while delivering tailored customer experiences. By analyzing the role of emerging technologies such as AI, blockchain, and privacy-enhancing technologies, the paper highlights the future trends in personalized marketing and CRM integration in Japan. Furthermore, it delves into the implications of Japan’s aging population, generational differences in privacy expectations, and the evolving regulatory landscape. The paper concludes by emphasizing the importance of transparency, user control, and ethical data practices in balancing privacy with personalization, offering a roadmap for businesses to thrive in the Japanese market while respecting consumer values.

Deconstructing the Psychological Factors behind Brand Perceptions of Bottled Japanese Green Tea in Competitive Japanese Market

Deconstructing the Psychological Factors behind Brand Perceptions of Bottled Japanese Green Tea in Competitive Japanese Market

College quality and initial employment: insights from the Japanese labor market

College quality and initial employment: insights from the Japanese labor market

The Study of Japanese Web Novels Using Text Mining ：Focusing on ‘Shōsetsuka ni Narō’ and ‘Kakuyomu’

This study employs text mining to analyze and compare the distinctive characteristics and differentiation strategies of two major Japanese web novel platforms, “Shōsetsuka ni Narō” and “Kakuyomu,” using their metadata. Text mining was chosen as it efficiently processes large-scale data, making it an appropriate method to capture the extensive and varied characteristics of Japanese web novel platforms. This study specifically examines changes in annual submission counts, genre distribution, main terms within story summaries, and keyword frequency across both platforms to understand their distinctive trends and reader preferences in detail. The analysis reveals that “Shōsetsuka ni Narō” has established a broad collection centered on isekai fantasy, showing popularity in female-oriented works, which aligns with the preferences of a young reader demographic and places it at the heart of Japan’s web novel trends. In contrast, “Kakuyomu,” as a newer platform, differentiates itself by featuring exclusive “Kakuyomu Only” content and embracing niche genres like SF, mystery, and history, thereby appealing to a broader readership. Additionally, the two platforms’ differing age restriction policies and content management approaches offer readers a distinct experience. This study aims to outline the characteristics of these leading platforms within the Japanese web novel market and understand how their unique strategies impact reader engagement.

An Analysis of the Japanese Labor Market - A Case Study of University Students Actively Selecting Companies

An Analysis of the Japanese Labor Market - A Case Study of University Students Actively Selecting Companies