Just as cherry blossoms signify spring season, Japan’s stock market is flourishing. In February, the Nikkei 225 index surged past its 1989 peak of 38,915.87 reaching a new record of 41,087.75. This surge was driven by reforms implemented over the past decade, which have rendered Japanese companies more responsive to shareholders. 

Despite experiencing a partial retreat from its gains since then, the Nikkei 225 has still managed to achieve an approximately 16% increase year-to-date, surpassing the S&P 500 index’s 9% return. Moreover, abundant indications are suggesting that Japan’s economic resurgence will continue. 

Masakazu Takeda of the Hennessy Japan Fund stated that this year’s market rally is firmly grounded, pointing to Japanese companies’ continuous endeavors to enhance profitability and efficiency. Furthermore, he notes a growing global awareness, highlighting a rise in investor activism and Warren Buffet’s unexpected visit to Japan in 2023 following his investment in five major Japanese trading firms. 

Stocks opened with minimal movement on Thursday as investors remained cautious awaiting the release of the US consumer price index next week. 

In today’s trading session, the Nikkei 225 index is up by 0.5% at 38,392.10.

South Korea’s Kospi slipped by 1.9 points or 0.07% closing at 2,743.15. Samsung Electronics maintained stability from the previous session, while SK Hynix experienced a slight increase of 0.17%. However, financial companies began mostly on a downward trend, with KB Financial dropping by 1.03% and Shinhan Financial decreasing by 0.53%. Hyundai Motor saw a decline of 0.41%, Kia dropped by 0.69% and Hyundai Mobis slipped by 1.08%.

Meanwhile, the Hang Seng index went up by 1.2% closing at 18,538.57, while the Shanghai Composite index gained 0.9% closing at 3,156.96.