This impressive growth has been made possible by active foreign purchases and improvements in corporate governance within the country. Stocks have reached levels unseen since the bursting of the “Heisei Bubble”.
In the late 1980s and early 1990s, the Japanese economy experienced rapid growth. However, a subsequent sharp decline led to a prolonged stagnation known as the “Lost Decade”. The country faced deflation, which lasted until the early 2000s.
The current record values of the Topix index highlight positive changes taking place in the Japanese market and attract the attention of both domestic and foreign investors.
The Topix index rose by 0.6% and closed at 2,127.18. Strong earnings from companies focused on the domestic market contributed to the bullish trend. This year, the Topix has outperformed the S&P 500, benefiting from the additional boost of a weakened yen and the Bank of Japan’s continued easy monetary policy.
