The Nikkei 225 reached yet another milestone as it rallied to a 33-year high on Monday. This surge was propelled by the Tokyo Stock Exchange’s release of a list showcasing companies that have made efforts to boost their share price.
The Nikkei 225 JP:NIK experienced a 0.9% increase, ending at 35,901.79 points. It has achieved a 7% year-to-date gain, making it one of the top-performing stock markets globally in the new year.
The depreciation of the yen against the dollar has played a significant role in driving these gains. In contrast, the iShares MSCI Japan ETF (EWJ) has seen a more modest 4% increase in value since the start of the year. Meanwhile, the S&P 500 (SPX) has remained relatively stagnant.
However, these impressive market results can also be attributed to Japan’s concentrated efforts to strengthen corporate governance. This development has instilled a sense of bullishness on Wall Street, with firms like Morgan Stanley expressing optimism.
To emphasize this concerted effort, the Tokyo Stock Exchange recently published a list of companies that voluntarily shared their initiatives to prioritize the cost of capital and stock price. This request was initially made in March of last year.
It is important to note that the Martin Luther King Jr. federal holiday led to the closure of U.S. markets on Monday.
