negativespace.com
The historic rise in Japan's stock exchange activity is attributed to a number of causes. First off, as a result of the Japanese yen's decline versus the dollar in recent months, investors have been aggressively acquiring shares of Japanese corporations. By the end of last year, Japan's GDP had already dropped to fourth position globally due to the weakness of the yen, making Germany the third-largest economy in the world.
Nevertheless, following a protracted period of deflation and stagnation, investors are starting to perceive potential in Japanese assets, indicating the possibility of near-term development in Japan's business sector and economy.
As Japan transitions to a regular inflationary nation, its businesses are well-positioned for expansion, according to Masayuki Murata, portfolio manager at Sumitomo Life Insurance, quoted by Bloomberg: "Rather than slashing costs for an extended period of time due to diminishing sales, companies are now starting to boost revenues even while costs rise."
source: bloomberg.com
Nevertheless, following a protracted period of deflation and stagnation, investors are starting to perceive potential in Japanese assets, indicating the possibility of near-term development in Japan's business sector and economy.
As Japan transitions to a regular inflationary nation, its businesses are well-positioned for expansion, according to Masayuki Murata, portfolio manager at Sumitomo Life Insurance, quoted by Bloomberg: "Rather than slashing costs for an extended period of time due to diminishing sales, companies are now starting to boost revenues even while costs rise."
source: bloomberg.com
