VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

A visitor walks past Japan's Nikkei stock prices quotation board inside a building in Tokyo, Japan February 19, 2024. REUTERS/Issei Kato/file photo - 

Voinews, Singapore - As Japanese stocks approach record levels last seen in the 1989 bubble-era, valuation metrics suggest they are still far from overpriced compared to historic levels and global peers.

The Nikkei share average is up nearly 50 per cent in the past year and closing in on its record high of 38,957.44 points touched on the final trading day of 1989.

Yet, on a popular price-to-earnings ratio metric, the MSCI Japan index's 12-month forward ratio stands at 14.1, below the MSCI World index's 17.4 and the MSCI United States index's 20.1.

"From a historical perspective, Japanese stocks at a forward price-to-earnings ratio of 15x do not look expensive versus other markets, especially at current interest rate levels," said Miyuki Kashima, head of Japan investments at Fidelity International.

More importantly, Japanese stocks trade at a low price-to-book value, meaning the shares are underpriced relative to the value of assets on companies' balance sheets.

MSCI Japan's price-to-book ratio is 1.37, much lower than 4.72 recorded in 1989, when the market last hit these highs during Japan's asset price bubble.

The Nikkei's rally over the past year has been fuelled its cheapness, corporate governance reforms and steady buying by foreigners. It has also come after a long period of stagnation since the early 1990s as companies focused more on stability than growth.

The Tokyo Stock Exchange (TSE) has sought to get companies to change conservative accounting practices, by pushing for better governance, share buybacks, lower cross-holdings and increased dividends.

Within its Prime Market segment, which comprises 1,657 companies with a market capitalization exceeding 100 billion yen ($666.67 million) each, 78 per cent traded at a price-to-book ratio below 1 as of December and had outlined initiatives to optimize capital use and enhance stock prices.

Foreign investors aversion to weak Chinese markets have also prompted a search into other Asian assets.

Fidelity Kashima said the TSE's decision to publish the names of companies that have complied with its call to disclose plans had improved governance.

"Ultimately, structural change driven by such reforms will help to optimise capital allocation, while a shift to moderate inflation is supportive of growth in wages and investment," he said.

LSEG data showed approximately one-third of companies in Japan's Nikkei 225 index still trade below book value, compared to a mere 3 per cent ratio for the S&P 500 index.

These reforms have meant the overall yield shareholders are getting in Japan, through buybacks in particular, is more than the headline dividend yield.

MSCI Japan's dividend yield stood at 2.23, surpassing the MSCI World's 1.9. Data from ETF manager WisdomTree shows MSCI Japan index's shareholder yield, which reflects the total returns including dividends and share buybacks, stood at 3.34, much higher than the MSCI World's 2.91.

Attractive valuations have lured foreign investors, who have pumped in about 6.3 trillion yen into Japanese equities last year. Most analysts say foreigners still remain underweight Japan.

Japan's domestic households are also allocating cash to the stock market, via a tax-exempted Nippon Individual Savings Account (NISA) program//CNA-VOI

Soccer Football - Champions League - Round of 16 - First Leg - PSV Eindhoven v Borussia Dortmund - Philips Stadion, - February 20, 2024 PSV Eindhoven's Luuk de Jong celebrates scoring their first goal REUTERS/Piroschka Van De Wouw - 

Voinews, Berlin - Borussia Dortmund were left fuming over a penalty decision in Tuesday's Champions League round of 16 first leg that earned hosts PSV Eindhoven a 1-1 draw.

Donyell Malen had scored a superb goal for the visitors against his former side before Eindhoven's Luuk de Jong converted the spot kick in the 56th minute at the Philips Stadion.

"Zero percent penalty, zero," Dortmund defender Mats Hummels said of his challenge on Malik Tillman.

"I go in for the tackle, I clearly get to the ball first, I change its course and then I make minimal contact. But this is football, I am sorry, zero penalty.

"Tillman was cracking up laughing, (Eindhoven winger Johan) Bakayoko also cracked up laughing, they all looked at me, grinning for several minutes," Hummels added.

The Dortmund defender got a touch on the ball before making contact with German-born U.S. international Tillman but a VAR review confirmed the on-field decision by referee Srdjan Jovanovic, much to the visitors’ dismay.

"That is the second ridiculous penalty awarded against us in the Champions League after the (group game) at Paris St Germain. I don't understand the referees at the moment," Hummels said.

Dortmund lost 2-0 in Paris in September with Kylian Mbappe scoring from the spot following a hand ball incident.

"Penalties are being awarded for situations that are not even fouls when they happen in midfield," Hummels added. "No defender in the world would award this penalty."

Dortmund host the Dutch side on March 13 in the return leg.

"We asked him (referee) but for him it was a clear cut situation," Dortmund sports director Sebastian Kehl said of Eindhoven's penalty.

"You cannot change that but try to influence it through the fourth official. This is a very painful situation for us."

For coach Edin Terzic, the only thing to do was to move on.

"We cannot change it, it's part of the game," he added. "We now have the chance to make things right in three weeks. This is the only thing we control and we will focus on that."//CNA-VOI

Indonesian Arm forces and Australian arm forces pose after the meeting in enhancing cooperation (Photo : Australian embassy) - 

Voinews, Jakarta - General Angus Campbell AO, DSC, Australian Chief of Defence Force, visited Jakarta to discuss defence and security issues of mutual interest to Australia and Indonesia, including options to strengthen and broaden bilateral defence cooperation.

GEN Campbell met his counterpart, the newly appointed Commander of the Indonesian National Armed Forces, GEN TNI Agus Subiyanto.

According to a release received by Voice of Indonesia on Wednesday (21/02/24), GEN Subiyanto and GEN Campbell discussed the importance of people-to-people links between TNI and the Australian Defence Force.

The two Generals also discussed strengthening cooperation in response to the range of security challenges in the region. 

GEN Campbell met with the Indonesian Minister for Defence, HE Prabowo Subianto. Their discussion covered the longevity of our defence relationship, and opportunities for closer collaboration on our shared vision for an open, stable and prosperous region//VOI

Deputy for Transport and Infrastructure at the Coordinating Ministry for Maritime Affairs and Fisheries and Chair of the National Energy Transition Task Force (TEN) Rachmat Kaimuddin during a press conference (Photo : Kemenkomarves) - 

Voinews, Jakarta - After attending the 2024 International Energy Agency (IEA) Ministerial Meeting in France on February 13-14, Deputy for Transport and Infrastructure at the Coordinating Ministry for Maritime Affairs and Fisheries and Chair of the National Energy Transition Task Force (TEN) Rachmat Kaimuddin again conveyed Indonesia's consistency in pushing for an energy transition aimed at mitigating climate change, strengthening energy security and maintaining Indonesia's economic growth.

In a meeting with national and foreign media, Deputy Rachmat Kaimuddin conveyed several learning points from the 2024 IEA Ministerial Meeting. Among them is the high dependence of Indonesia's energy sources on imported refined oil and LPG.

"Indonesia's dependence on refined oil and LPG is influenced by the high demand for consumer energy from the industrial and transportation sectors. "Apart from that, the majority of electrical energy also comes from fossils," explained Deputy Rachmat.

According to a release received by Voice of Indonesia on Tuesday (20/02/24), to face these challenges, Deputy Rachmat said that the TEN Task Force is currently developing a comprehensive strategy and implementation plan for national energy transition programs in four main sectors, namely electricity generation, transportation, industry and buildings.

Deputy Rachmat said that the energy transition strategy will encourage the use of four technological pillars applied across sectors.

These include energy efficiency, industrial electrification, the use of low-carbon energy alternatives and carbon sequestration for buildings, explained Rachmat.

"For example, the use of low-carbon energy sources in the electricity generation sector will look at the potential for using renewable energy sources such as solar, geothermal and others. "Meanwhile for transportation, we want to optimize biofuels, and for buildings we encourage rooftop solar panels," concluded Deputy Rachmat.

In the end, a cross-sector and cross-strategy approach is the key to achieving an energy transition that supports Indonesia in mitigating climate change, without sacrificing economic growth and national energy security//VOI