Japanese Value Investing Resurges: 26 March 2025
2 6 M A R C H 2 0 2 5 • I S S U E 6 3
Market Mood
February's flash PMI data signaled an unexpected slowdown in the US service sector, prompting a decline in equity markets, with the S&P 500 dropping from its all-time high on February 19th. Investor sentiment, initially optimistic post-President Trump's election, has waned due to uncertainties around tariffs and new policies, marking one of the most risk-averse periods in five years. The March 24th US PMI report showed growth in services but a decline in manufacturing, while Europe and Japan posted stronger PMI figures, potentially inflated by tariff-related business activity. Meanwhile, the UK grappled with rising employment costs from Autumn Budget policies, raising concerns about hiring and economic performance, with inflation and March hiring data poised as key economic indicators.