The Nikkei shows no signs of stopping. Since the index broke its 1990 record in February 2024, it has continued to break records. It passed 40,000 points in March 2024, 45,000 in September 2025, and 50,000 this morning.

Source: MarketScreener

After the boom of the 1980s, followed by the crash of 1990, Japan experienced three decades of a deflationary spiral, with investors deserting its stockmarket.

Japan now seems to be emerging from this spiral. In addition, the Japanese authorities have pushed their companies to adopt "pro-market" policies: improving governance, ending cross-shareholdings, increasing shareholder returns, etc. These changes are gradually restoring the appeal of Japanese stocks.

In recent weeks, the arrival of a new prime minister has led to a further rise in the Nikkei. Sanae Takaichi is following in the footsteps of Shinzo Abe, prime minister from 2012 to 2020, who was a proponent of fiscal and monetary stimulus.

This closeness should also help her build good relations with Donald Trump. During his first term in office, the US president was close to the then Prime Minister Abe, with both leaders even playing golf together on several occasions. "You know he was one of my favorites," the US president told reporters accompanying him on Air Force One on Saturday.

The renewed interest in Japan also responds to investors' desire for diversification, at a time when valuations are stretched, particularly in the US. In this context, Japanese stocks are relatively attractive.

According to JPMorgan's forecasts, the Japanese market offers the highest long-term return expectations in the equity universe.