Why is Japan's stock market rising?

    Short answer

    Japan's market is rising on corporate reform, a weak yen boosting exporters, and global investors rediscovering the country after decades of stagnation.

    What happened

    The Nikkei 225 broke above levels last seen in 1989.

    Why it happened

    Japanese companies are finally returning cash to shareholders through buybacks and dividends. A weak yen supercharges profits for Toyota, Sony, Nintendo and other exporters. Foreign investors — including Warren Buffett — increased Japan exposure.

    Why investors care

    Japan is the world's third-largest stock market and a key diversifier away from US tech.

    How it affects ordinary people

    If you hold a global ETF (like MSCI World), Japan is roughly 5-6% of it — you benefit indirectly.

    FAQ

    Why did Japan stagnate for so long?

    After a huge asset bubble burst in 1989, deflation and weak growth persisted for over 30 years.

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