Analysis-Once shunned, activist investors dig in to win in Japan

Activist investors, led by U.S. hedge fund Elliott, are stepping up long‑term campaigns in Japan, leveraging recent wins and corporate governance reforms to press companies on capital returns, buybacks and asset sales. Elliott has disclosed stakes in Daikin and Mitsui OSK Lines and struck a deal over Toyota Industries shares, signalling a more vocal, Japan‑attuned playbook. Brokers and fund managers say this trend is attracting foreign capital and could force widespread corporate change, supporting Japanese equity valuations (Japan 225) over time. Risks include potential short‑termism and financialisation, but overall the rise of activism is seen as a structural, bullish catalyst for Japan’s market.