Sanguine January, TOPIX hits a 30-year high

Timely data for January suggest that economic activity has held up far better than during the previous state of emergency last spring. And with the government mulling lifting the state of emergency for three prefectures next week, and others potentially following soon after, the economy may be able to dodge a contraction this quarter and should enter Q2 with some momentum. Meanwhile, Japan’s TOPIX finally broke the 1,900 level for the first time in 30 years this week. We think risky assets will continue to perform well over the next couple of years.