2024-03-26 11:40:00 ET
Summary
- The Nikkei 225 index reaching new all-time highs, surpassing the previous record set in 1989, is a significant psychological achievement for Japan.
- Despite Japan’s current recession, the long-term effects of Abenomics, particularly corporate governance reform, are influencing market sentiment and investment in Japanese stocks.
- The recent surge in Japanese equities may be partially attributed to a shift away from Chinese investments, though this trend is not solely responsible for the market’s performance.
By Jeff Weniger, CFA
It’s a little surreal, having looked at long-term charts of the Japanese stock market for my entire career, but here we are, seeing new all-time highs on the Nikkei 225. The previous record had held since 1989, when many of us mid-career types were children. Granted, the Nikkei is price-weighted like the Dow Industrials, so it’s a little blasphemous to cite such a poorly constructed index. Cut us some slack. Everyone is talking about the Nikkei and it is the index they cite on CNBC. It’s a big psychological win for Japan’s benchmark to surpass 40,000 for the first time....
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Japanese Stocks Are Red Hot