This year’s equity rally in Japan has laid the groundwork for more potential gains in 2025, on tailwinds from the gradual normalization of monetary policy and a surge in activist investment.
The country’s benchmark Topix and Nikkei 225 Stock Average both reached all-time highs in 2024 and rose around 15%, despite a widespread rout in August after the Bank of Japan’s second interest rate hike caught the market by surprise.