Japanese stock prices are currently locked in a tug-of-war near their all-time highs, with strong demand for buying on dips supported by the spread of the new NISA and improvements in capital efficiency (PBR reform), although wariness over signs of overheating also remains strong. The issues surrounding the possibility of a second bubble collapse are being discussed.
Japan's equity market is currently said to be locked in a fierce tug-of-war at the milestone of its all-time high. Buying on dips remains strong, reportedly driven by the spread of the new NISA and improvements in corporate capital efficiency (PBR reform).
A shift in the market trend is said to show up in changes in investor sentiment rather than in stock prices themselves. It has been pointed out that during the bubble period in the late 1980s, the optimistic view that “any decline was a buying opportunity” prevailed. Accordingly, cautious views are said to have been expressed regarding the possibility of a future trend reversal.
The full article is for members and contains information not reviewed here, but the key points at this stage are the coexistence of active buying on dips and the risk of overheating, with the situation understood to be awaiting further developments.