Japanese stock prices remain weak despite growth
From Asian News Network:
Japanese and U.S. stock markets reach all-time highs, with U.S. stock prices rising over 10-fold and the Nikkei Stock Average in Tokyo seeing recent gains from foreign investment and yen depreciation. Analysts emphasize the need for a “virtuous cycle” of domestic investment to support Japanese company growth.
Nikkei 225 stock average hits all-time high after 34 years, surpassing previous record set in 1989. U.S. Dow Jones Industrial Average and Nasdaq Composite also see significant increases since 1989, with U.S. IT giants dominating global market over Japanese companies.
Japan’s economic bubble burst in 1991 led to decades-long deflation period, known as the “Lost 30 Years.” Recovery began after aggressive government fiscal policies and monetary easing. Recent stock price surge attributed to better performing Japanese companies and foreign investments, with semiconductor industry boom contributing to growth.
Productivity is highlighted as key for Japanese companies to attract more investors, both domestically and internationally. Recent stock price increases linked to companies transforming themselves with improved governance and performance. Global AI boom and yen depreciation also contribute to undervalued Japanese stocks, with market opening up due to slowdown in Chinese economy.
Read more at Asian News Network: Japanese stock prices remain weak despite growth