Nikkei 225 Surpasses 40,000 in February 2024

In February 2024, the Nikkei 225 index surpassed the JPY 40,000 mark, marking a record-breaking year for Japan's financial markets, driven by factors such as the depreciation of the yen and low interest rates. Foreign capital influx into Japan has reached a ten-year high, with significant IPO activity and a notable increase in private equity deals. The Tokyo Stock Exchange has encouraged companies to improve their management awareness regarding capital costs, leading to better price-to-book value ratios. These financial developments are attributed to Abenomics initiatives that aim to combat long-term deflation and stimulate stock purchases. Looking forward, gradual interest rate increases are expected to benefit businesses, fostering optimism for continued growth in Japan's economy. Analysts express confidence in the potential for ongoing reforms to enhance the performance of Japanese companies in the coming years.