Thoughts on JGB Yields and Nikkei

Been watching the JGB yields closely, especially after the latest comments out of the BoJ. There's a subtle shift in tone, nothing dramatic yet, but enough to make me think about how the Nikkei might react if they actually started letting rates run a bit higher. We've seen some of the speculative money flow into $IDR earlier this week, which is interesting, but I'm more focused on the domestic side in Japan. If that 10-year starts creeping up, even gradually, it changes the game for a lot of the equity plays that have benefited from essentially zero-cost funding. My watchlist for the Nikkei is definitely getting a haircut on some of the more rate-sensitive sectors, looking instead for quality names with strong balance sheets that can weather a bit of yield volatility. Not predicting a crash by any means, just adjusting for a potentially less accommodative environment down the line.