Recently, Kohei Kusano, Chief Analyst at Fenix One Asia Pte. Ltd., gave an exclusive interview to CNN’s financial channel in the United States, sharing his core views on Japan’s shift in monetary policy, changes in the Japan–U.S. interest rate differential, and the trend of international capital flowing back into Japan.

Kusano noted that Japan is gradually entering an interest rate hike cycle. As long-term government bond yields rise and the interest rate gap with U.S. long-term rates continues to narrow, the foundation of the yen carry trade—which has dominated global capital flows for many years—is being shaken. “When the structure of funding costs changes, global capital is bound to reassess risk and return. The Japanese market is now at the starting point of this repricing process,” he said.

He emphasized that the recent return of some international capital to Japan is not a short-term trading phenomenon, but rather a strategic asset allocation adjustment based on improvements in the medium- to long-term macroeconomic and institutional environment. Beyond interest rates, ongoing enhancements in the corporate governance of Japanese listed companies, stronger focus on shareholder returns, and improved capital efficiency are significantly boosting international investors’ long-term expectations for Japanese assets.

Speaking about Fenix One Asia’s strategic partnerships with several top-tier international investment institutions, Kusano revealed that the total scale of cooperative capital is approximately USD 1.8 billion. The funds will primarily be deployed in Japanese equities, funds, and financial assets with structural growth potential. “Our objective is not to capture short-term volatility, but to move in step with the medium- to long-term recovery cycle of Japan’s capital markets,” he said.

Regarding the newly established international investment banking investment and trading alliance, Kusano explained that the alliance integrates research, capital, and client resources to enhance cross-market investment efficiency. It will also adopt a highly market-oriented mechanism to select future CEOs responsible for Asia-Pacific operations, using actual performance and investment returns as the core evaluation criteria.

In closing, Kusano concluded that Japan’s financial markets are undergoing a quiet yet profound repricing process. As global capital participation increases, Japan is expected to shift from a traditionally defensive allocation to becoming a core market with structural opportunities. The CNN host commented that this perspective is increasingly becoming a mainstream consensus among international investors.