Since the beginning of the year, the Japanese stock market has continued to rise. Last week, the Nikkei 225 Index rose 5%, once surpassing the 30,000-point mark, reaching the highest point since the bubble economy burst in 1990. Japanese stocks have surged about $518 billion in market value since their Jan. 5 lows.
Have the Japanese stocks, which have been at historical highs for many consecutive days, gone too far? Many analysts pointed out in unanimous agreement that the current valuation of Japanese stocks is low, and there may be more room for growth. Goldman Sachs strategist Bruce Kirk said in an interview on May 17 that the current Japanese stock market is in a once-in-a-decade bull market, and solid fundamentals drive Japanese stocks up. At the same time, the inflow of foreign capital and the wave of buybacks will further support the Japanese stock market bullish sentiment.
The rise in Japanese stocks was driven by a number of factors. First, the uncertainty of the international financial and monetary situation has gradually subsided, and international capital has flowed back to Japan. Second, the performance of enterprises is stable and good. Third, the Tokyo Stock Exchange is committed to improving the governance of listed companies. Fourth, some recent international good news has driven market sentiment. Compared with Europe and the United States maintaining high interest rates in the medium term, Japan’s ultra-low interest rates and asset purchase policies will continue to support the capital market.
Soaring $518 billion! The Japanese stock market is positive and the market value continues to rise! Click on the video to see it!