The stock rally that pushed Japan’s Nikkei 225 Stock Average past a record that stood for more than three decades looks set for further advances as foreigners rush back in.
That’s the view of investors and strategists, who are also watching for a potential broadening of equities gains that may take the wider Topix index to an all-time high this year. Fund flow data indicate there’s scope for trillions of yen to return to Japan’s stock market based on figures compiled by Bloomberg.
With the nation’s deflation era now seemingly behind it, Japanese companies showing signs of sustained profit growth and the Tokyo Stock Exchange championing shareholder interests, some analysts project gains of more than 10% for the Nikkei. The Topix also remains about 8% below its 1989 peak.