Japan’s world-beating stock rally should continue to fuel sales in both its primary and secondary equity markets through next year, according to BofA Securities Japan.

Proceeds from initial public offerings and additional share sales in Japan have reached more than $20 billion (¥2.9 trillion) so far in 2023, an increase of 3.5 times compared with the same period last year. That’s come as the benchmark Topix has surged about 11% in dollar terms, outpacing gains in a gauge of global peers.

"There is a usually a lag between Japanese market performance and corporate ECM activity, so I think that this trend will continue for the next year or two,” said Shu Nagata, the head of Japan Global Capital Markets at BofA.