Momentum factor investing models in Japanese equities currently

Momentum factor investing models in Japanese equities currently favor robotics and automation exporters, supported by robust yen depreciation. Weekly volatility remains elevated at 18%, but price momentum scores continue to climb, attracting algorithmic buy programs. Electric vehicles (EVs) tend to account for a smaller share of sales in Latin America, Africa and other parts of Asia - but growth there has been surging. Both value and momentum factors are seen as cyclical, performing well in rising markets but poorly during declines. Amid economic uncertainty caused by the U.S.’s trade policy, investors sought safe-haven assets, leading to a shift toward other developed economies, which supported these factors' performance. Additionally, announcements of economic actions, such as European nations' willingness to boost defense spending , further increased the appeal of investing in foreign equities. Conversely, low volatility and quality are considered defensive, performing best during economic downturns. Canadian equities within metals and mining momentum baskets are extending gains. Factor models project an additional 5-7% potential upside as trend stability scores remain firmly in bullish territory.