Japan’s stock market has been waiting for more than three decades for its finally at the moment in the sun. Japan’s major stock indexes are trading at highs not seen since 1990. During this time the country’s infamous asset bubble of the late 1980’s was only deflating. This year, the benchmark Topix rose almost 14%. The Nikkei 225, tracking Japan’s blue chip companies increased nearly 17%. The country’s indexes have outrun the Unites States’ S&P 500 and Europe’s Stoxx 600 benchmark indexes. Both rose around 8% that time.
An investment manager at Man GLG, a subsidiary of hedge fund giant Man Group said that in his 33 years in the market, he sees positivity. In addition he believes that it is more than positivity in the whole period. Plus, it is not based on the hype. Based on investors’ opinion, Japanese stocks get the benefit from relatively cheap valuations, a long-awaited return of inflation, plus weakening currency. Warren Buffet, a legendary investor, told Japanese publication Nikkei that his flagship investment firm, Berkshire Hathway, increased its holdings in five Japanese companies.
Foreign investors bough around $15.6 billion worth of Japanese stocks last month. It was the highest monthly amount since 2017. It is from the Japan Exchange Group source. For years, investors expected modest rallies in Japanese stocks that would sustain market revival. As the world’s third-largest economy, and a home of electronics and carmakes these seem hard to revive. But it really reaches its momentum. Now, Japanese stocks have receive their biggest bump from an overhaul of corporate governance rules calling it the moment in the sun.
