Japan’s stocks reached their highest level in 33 years on Tuesday, propelled by growing hopes of higher governance standards and more serious regard for shareholders after decades of lacklustre returns.
The broad Topix index rose almost 0.6 per cent on Tuesday, taking gains so far this year to 13.9 per cent and close to its highest level since Japan’s notorious market bubble burst in the final days of 1989. The Nikkei 225 index has gained more than 16 per cent since the start of the year and is again close to a post-bubble high, making Japan one of the hottest markets in the world.
Foreign investors have ploughed into stocks and futures in the past five weeks, with net inflows during the period reaching nearly $30bn, according to the Tokyo Stock Exchange, some of the largest inflows of the past decade.