Asia Adopts 'Value Up' Reforms to Bolster Markets Against Trump-Era Trade Policies
Inspired by Japan's success, Asian countries implement corporate governance reforms to enhance shareholder returns and market valuations.
- The 'Value Up' strategy, originating in Japan, emphasizes corporate governance, shareholder returns, and market efficiency to improve stock performance.
- Japan's decade-long reforms, which include boosting dividends, increasing board diversity, and reducing cross-shareholdings, led to record highs for the Nikkei 225 this year.
- South Korea, India, China, and other Asian nations are introducing similar initiatives to counter economic challenges posed by Donald Trump's trade policies.
- India's reforms for state-owned enterprises since 2019 have increased dividend payouts and earnings, while South Korea's results have been mixed, with its Kospi index down this year.
- Fund managers see long-term potential in these reforms, with markets like Singapore showing early success, as its Straits Times Index gained over 15% this year.