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Japan's Stock Market Hits All Time Highs says Resona Dai-Ichi Group

Resona Dai-Ichi Group
2017-10-17 17:56 1363

TOKYO, Oct. 17, 2017 /PRNewswire/ -- On Monday, Japan's stock index Nikkei 225 reached its highest level in 11 years. For most of the investors, this is good news, as they consider Japanese companies as a diversification tool in their portfolios. Today, Japan has a 9% share in the stock markets worldwide commented Resona Dai-Ichi Group.

The stock market in Japan has suffered two collapses that ripped out over 60% in each case. The first stagnation started in 1992, after a local market bubble burst, and the second came soon after the 2008 financial crisis.

Aki Takuro, the research director at Resona Dai-Ichi Group commented on the Nikkei 225 jump, "Investors now are more confident to increase their exposure to the Japanese stock market, as the country's economy seems to recover at full level."

From all these, corporate governance is experiencing an ongoing transformation process under Prime Minister's reformation program.

Henry Stevens, Director of Global Equities of Resona Dai-Ichi Group, said: "We believe inflation will help alter the psychology of Japanese investors, and the new Corporate Code has started getting companies to put cash to work, which might be the impetus to change the culture of share ownership."

Resona Dai-Ichi Group have stated that Japan's stock market has a P/E ratio of 16, which indicates more value when compared to the global figure at 19, and 22 for the United States.

"Investors consider that the US stock market might have been inflated, while Japanese stocks show value." Said Eliot Williams, Head of Corporate Wealth Management at Resona Dai-Ichi Group.

If previously companies were holding more cash, today the new trend in the local market is that more focus is put on shareholders, who can benefit from dividends and share buybacks.

As for the performances at the macroeconomic level, unemployment indicators are at the lowest levels in several decades, while corporate earnings show dynamic upward trends.

About Resona Dai-Ichi Group

Established in 2008 and Headquartered in Tokyo Japan, Resona Dai-Ichi Group has built a formidable reputation within the financial sector. Within the last nine years Resona Dai-Ichi Group has performed millions of financial transactions for its clients with ease, today the company boasts $4.1 billion US dollars of assets under management.

Media Contact:
Aki Takuro
aki.takuro@rdgfinancial.com
(+81)345406704

 

Source: Resona Dai-Ichi Group
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