Japan in focus | 4 min read | November 2026
Japan and the UK’s shared investment goals across sectors such as AI and biotech are creating a fertile ground to deploy long-term capital
The narrative around Japanese investment opportunities has fundamentally changed. What began in 2022 as Japan's push to establish itself as an asset management nation has sparked a shift in sentiment, moving sophisticated institutional investors from cautious curiosity to serious strategic engagement, according to panellists at the Japan-UK Financial Seminar, co-hosted by the Embassy of Japan and the City of London.
Under Prime Minister Takaichi, Japan recently published a roadmap to deploy 370 trillion yen ($2.3 trn) in public-private investment by 2040 across 17 strategic sectors and 62 priority technology areas such as AI, semiconductors, energy, and biotechnology.
Suneel Bakhshi, Deputy Group CEO of Mizuho Financial Group, identified four sectors with the most realistic opportunities for investors: resources, energy security, and the green transition (¥29 trillion), digital and cybersecurity (¥55 trillion), semiconductors and AI (¥100+ trillion), and drug discovery and advanced medical care (¥64 trillion),
“These sectors not only represent significant investment but also have substantial ripple effects across the economy,” he said.
He highlighted three of Japan's industrial strengths that make it compelling for overseas investors. Precision and coordination: Japan's industrial machinery and manufacturing processes are renowned for their high standards and ability to navigate complex ecosystems. Indispensability in global supply chains: Japan holds a unique position in niche areas of global trade, particularly in sectors like semiconductors, automotive, and robotics. Demographic trends as opportunities: Japan's aging population and labor shortages present a test environment for Japan to be a pioneer of trends that other developed countries are also facing.
Mari Nakamura, CEO of Nomura Asset Management UK said that since the 2022 reforms to establish Japan as an asset management nation, Nomura has supported individual wealth building in Japan, and connected global investors with Japanese opportunities, as reflected by a new program called Project Breeze. She said that while the initial mood was cautious, the sentiment has shifted to one of positivity for three reasons. Firstly, Japan has created an ecosystem where regulators, the Tokyo Stock Exchange, investors, and companies work together collaboratively in a way that is distinct from other markets. Secondly, Japanese corporate governance is no longer behind Western countries. Finally, the next chapter for Japanese companies may well be written through portfolio reshaping and investing for growth — and that is what we want to understand better.
Teppei Yamamoto, Partner at Deloitte, echoed many of these comments and said that Japan is “totally open” for business, referring to the government’s recently announced economic blueprint for foreign direct investment, which envisages 60 trillion yen of inbound investment this year, and an ambitious goal to double this amount to 120 trillion yen by 2030.
Nakamura at Nomura Asset Management emphasized the importance of private markets in the investment ecosystem. The firm manages about £16 billion ($21bn) in private assets and has made the sector a central pillar of its strategy as infrastructure, innovation, and business transformation require patient, long-term capital, from a range of sources.
"We think of private markets not simply as a portfolio diversification tool, but as social infrastructure that underpins sustainable growth," she said.
Nakamura added that a significant investment has been made into ensuring methodologies are clear and accessible to ensure the trust of investors in these markets. She added that as global private markets continue to expand, the UK's strengths in infrastructure, healthcare and renewable energy could become increasingly compelling destinations for long-term capital, particularly as those strengths are further developed and more widely recognised — a direction, she said, that Nomura is watching closely
Stephen Johnson, Managing Director Japan, Asset Management at L&G said that strong relationships are crucial for successful investment partnerships between the UK and Japan. He shared his experience of entering the Japanese market in 2017, invited by the largest asset owners to support Japan's stewardship agenda. Instead of competing independently in a fierce market, L&G sought out partnerships which eventually led to it becoming a top 10 pension manager in Japan.
“If you're a partner from overseas, bringing information and support to Japanese players and helping them with their own competitiveness problem in Japan, it's a market where you can make good headway and grow,” he said.
Johnson also highlighted how these partnership can work in the other direction, citing the scale of UK pension capital seeking deployment. Over the next decade, £500 billion ($662 billion) will move into pension buyouts, creating substantial demand for partners who can help deliver the necessary assets and investments. The goal is finding partnerships that harness Japanese purpose and capability as much as Japanese capital.
Johnson said that the UK's regional regeneration efforts, driven by public-private partnerships, are a good source of opportunity for Japanese companies and investors looking to diversify their portfolios.
This content has been prepared by Nomura solely for information purposes, and is not an offer to buy or sell or provide (as the case may be) or a solicitation of an offer to buy or sell or enter into any agreement with respect to any security, product, service (including but not limited to investment advisory services) or investment. The opinions expressed in the content do not constitute investment advice and independent advice should be sought where appropriate.The content contains general information only and does not take into account the individual objectives, financial situation or needs of a person. All information, opinions and estimates expressed in the content are current as of the date of publication, are subject to change without notice, and may become outdated over time. To the extent that any materials or investment services on or referred to in the content are construed to be regulated activities under the local laws of any jurisdiction and are made available to persons resident in such jurisdiction, they shall only be made available through appropriately licenced Nomura entities in that jurisdiction or otherwise through Nomura entities that are exempt from applicable licensing and regulatory requirements in that jurisdiction. For more information please go to https://www.nomuraholdings.com/policy/terms.html.