Trump’s Anti-Diversity Drive Diverts Investors to Laggard Japan

Japanese firms have long lagged behind their Western peers on gender equality. A US crackdown on diversity may give them a chance to shine.

The spotlight is falling on Japan’s companies as President Donald Trump’s move to roll back measures emphasizing diversity, equality and inclusion looks set to divert ESG funds to alternative destinations. That’s the cue for the Asian nation after its companies boosted the number of women directors faster than their global peers last year.

Firms that prioritize governance reform are drawing funds such as Boston Common Asset Management as concern about US tariffs sparks a hunt for ...