Tokyo International News Agency

The Tokyo stock market on the 9th saw a dramatic plunge, with the Nikkei 225 average falling by over 4,200 yen at one point, closing down more than 4,000 yen. This marks the second-largest intraday decline on record, surpassed only by the "BOJ Shock" of 2024. The primary cause of this sharp decline is attributed to escalating tensions in the Middle East and the subsequent surge in crude oil prices. In the New York oil market, WTI (West Texas Intermediate) crude oil surpassed $110 a barrel, intensifying concerns about stable oil supplies and spreading uncertainty across the global economy. This impact was not limited to the Tokyo market, as major stock markets across Asia also experienced sharp declines. Amidst the market turmoil, the combination of record-low yen depreciation and this historic stock market fall has fueled growing anxiety about the future of the Japanese economy. On social media, numerous expressions of alarm were seen, such as "Is Japan okay?" and ...

The Japanese stock market is experiencing a historic boom. The Nikkei 225 average has broken above the 43,000 yen mark, hitting new all-time highs day after day. With individual investors' assets also reaching record levels, a strong upward trend is evident across the entire market. The Context: Why Japanese Stocks Are Surging Now For decades, Japanese equities were often overlooked by global investors, trapped in a cycle of deflation and modest growth. However, recent years have seen significant shifts, including corporate governance reforms aimed at improving shareholder returns, a gradual exit from deflation, and a perception that Japanese companies were undervalued compared to their global peers. This confluence of factors has rekindled international interest, making Japan an attractive destination for capital seeking growth opportunities. A significant driver behind the robust ascent of Japanese stocks is aggressive buying by foreign investors. There's a strong belief t...