“Japan’s main stock index, the Nikkei 225, is poised for a record close to the year, finally surpassing the level reached 35 years ago during the economic boom of the 1980s.”, — write: epravda.com.ua
Japan’s main stock index, the Nikkei 225, is poised for a record close to the year, finally surpassing the level reached 35 years ago during the economic boom of the 1980s. This was reported by the Financial Times newspaper. On the penultimate trading day of the year on Friday, the index rose 1.8% to close at 40,281 points, thanks to gains in companies such as Toyota, Sony and Fast Retailing (owner of Uniqlo). The last trading day of the year will be on Monday. Takeo Kamai, head of trading at CLSA Securities in Tokyo, said the market was buoyed by a “Christmas rally” amid news of mergers and acquisitions and expectations that Japanese corporations will be more attentive to the interests of investors.Advertisement: “News of a recent megamerger Honda and Nissan, as well as increasing shareholder payouts from market leader Toyota may attract cautiously optimistic investors who are ready to invest again in the Japanese market next year,” Kamai said. Before this year, the Nikkei’s highest point was just under 39,000 points, reached on the last trading day in 1989, amid investor euphoria about the strength of Japanese companies and the country’s real estate values. The subsequent collapse of Japan’s speculative boom has left foreign and local investors deeply skeptical of the country’s stock market, which has stagnated for decades.Advertisement: In 2024, however, sustained growth driven by corporate buybacks, activist funds and private investors finally lifted stocks beyond the levels reached during the economic bubble. The Nikkei index rose to a record high of more than 42,000 points in July, while the broader Topix index, which includes a large number of mid-cap companies, also surpassed its peak during that period. Analysts note that this year’s growth was even more unexpected because it was not driven by foreign investors, who have historically been the main driver of Japanese stocks. Foreign investors were net sellers in 2024, selling about $32 billion in stocks and futures, mostly in the second half of the year, according to operator Tokyo Stock Exchange.