Nikkei Hits All-Time High, Topping 1980s Bubble Peak Despite Recession
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Japan's Nikkei 225 stock index surged to an all-time high on Thursday, topping its previous 1989 record set before the country's economic bubble burst.
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The new high comes despite Japan currently being in an economic recession, showing the disconnect between the stock market and broader economy.
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Strong foreign investment, improved corporate governance, and a shift towards stocks by domestic investors have driven the Nikkei's sharp gains over the past year.
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Technology stocks like Tokyo Electron and SoftBank have led the way thanks to interest in areas like AI and computer chips.
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Unlike the 1980s bubble driven by overvalued Japanese companies, experts say valuations are not yet excessive and gains have been underpinned by rising overseas earnings.