BNY Investments' upbeat view on Japanese equities centers on the thesis that Prime Minister Sanae Takaichi's re-election was a good thing. For one, it should keep up governance improvements, including buybacks and higher dividend payouts, says Aninda Mitra, head of Asia macroeconomics and investment strategy. Another plus is that Takaichi is interventionist with the economy and on the supply side, in particular. She's "also been a bit more interventionist than we thought she would be in shielding Japanese consumers from the energy price shock." All that has suppressed inflation and boosted real incomes to some degree, Mitra says. Given that nominal wages continue to increase, all that is good for equities, not terrific for bonds. BNY Investments is neutral Japanese bonds and overweight Japanese equities. (fabiana.negrinochoa@wsj.com)