Japanese Stock Market Rally

SOURCE www.cnbc.com
Japan's Nikkei 225 hits a record high as corporate profitability and investor returns drive a rally in Japanese equities. The weaker yen, strong corporate earnings, and government reforms are supporting the market surge.

Key Points

  • Nikkei 225 hits record high surpassing previous peak from 1989
  • Foreign investors pouring funds into Japanese equities
  • Government reforms aimed at increasing shareholder returns
  • Bank of Japan considering moving away from negative rates regime

Pros

  • Record high in Nikkei 225 driven by robust corporate profitability
  • Steps to boost investor returns fueling the rally
  • Weaker yen supporting Japanese exports

Cons

  • Weakening yen diminishing purchasing power of consumers in Japan
  • High inflation rates impacting domestic consumption