Interesting developments unfolded in the Tokyo market. The activist investor Elliott Management acquired a large amount of shares in Daikin Industries, causing the stock price to jump by 14%—a significant increase that appears to be the largest since 2009.

This activist group seems to believe that Daikin Industries is not being fairly valued in the market. They are calling for improvements such as increasing profit margins, strengthening shareholder returns, and separating non-core businesses. The market reacted instantly as soon as the news broke during early trading on Thursday.

Elliott says it is “committed to building a constructive relationship,” but in reality, activist activity in the Japanese market has recently become more noticeable. Last month, it also announced an investment in Mitsui O.S.K. Lines, and there are also moves involving Toyota Group. It’s clear that pressure on Japanese companies is increasing.

A broader market environment continues to push companies to deliver stronger shareholder returns. An analyst at SMBC Nikko Securities also pointed out that, with the entry of this activist, Daikin Industries should strengthen its communication with investors even more.

Daikin Industries acknowledged the investment, but did not provide detailed comments. It’s worth watching how things develop from here. Pressure for corporate reforms from activist investors is becoming a trend even in the Japanese market.