Japan's Nikkei hits new high after 1989 peak | economy

Last week Tokyo's benchmark Nikkei 225 hit its highest level in nearly 35 years, making history.

Japan's stock market hit a new high last week after surpassing its 1989 peak after decades of stagnation.

Tokyo's benchmark Nikkei 225 index rose nearly 0.7 percent in morning trade on Monday, making Japanese shares the most expensive buys of the past year.

Mitsubishi UFJ Financial Group and pharmaceutical giant Daiichi Sankyo were the biggest gainers.

On Thursday, the Nikkei passed its all-time high of 38,915.8, set in motion by several „lost decades” of economic stagnation in 1989 as Japan's economy was in the throes of an asset crash.

The Nikkei gained 28.2 percent for the full year 2023, well ahead of the S&P500.

Foreign money poured into Japanese stocks as investors took advantage of a cheaper yen and corporate governance reforms to boost shareholder returns.

However, Japan's overall economy continues to struggle with anemic growth amid structural challenges that include a shrinking population and a strained labor force.

The Japanese economy officially entered recession earlier this month, giving way to Germany as the world's third-largest economy.

Other Asian markets fell on Monday.

Hong Kong's Hang Seng and Shanghai Composite both fell 0.7 percent, while South Korea's Kospi fell 0.8 percent.

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