Reported 8 months ago
Investor sentiment is high globally, with the Japanese stock market performing well. Investment professionals believe that Japanese stocks will lead investors into another golden decade, as they were a hotspot for global funds last year and are being driven by various positive factors this year. Firms in Japan with large cash reserves are expected to increase shareholder returns through dividends and stock buybacks. Factors supporting the continued rise in Japanese stocks include attractive valuations compared to other markets, ongoing corporate financial restructuring, the end of deflation, and strong corporate capital expenditure environment. While Japanese stocks have risen, their valuations remain lower than other major stock markets. Small-cap stocks in Japan are particularly favored, as they are currently trading at a discount and have the potential to attract market attention, leading to a capital inflow. There is optimism for sectors like domestic demand and industrial stocks. Financial analysts suggest that Japan's ongoing economic recovery, coupled with a low rate of financial product purchase by Japanese households, indicates the potential for further asset price appreciation. The opening of borders has led to a surge in tourist arrivals in Japan, further stimulating domestic consumption and signaling positive future stock market performance, with emphasis on competitive Japanese semiconductor ETFs.
Source: YAHOO