Japan's Stock Market Booms to 34-Year High, But Sustainability Remains Uncertain
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After decades of stagnation, Japan's stock market is booming, with the Nikkei index hitting a 34-year high in 2022.
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Several factors are driving the rally, including corporate governance reforms, a weak yen boosting profits, high foreign investments, and expectations of rising wages.
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Warren Buffett and others have invested billions in Japanese stocks thanks to attractive valuations.
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Analysts are divided on the sustainability of the stock boom amid economic headwinds like a rising yen and structural challenges.
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While positive, the market rally doesn't necessarily signal a broad economic turnaround given enduring deflationary trends and demographic decline.