Signage for the Tokyo Stock Exchange (TSE) operated by Japan Exchange Group Inc. (JPX) will be displayed outside the Tokyo Stock Exchange in Tokyo, Japan on Friday October 2, 2020.
Akio Kon | Bloomberg via Getty Images
SINGAPORE – Japan’s stock market has seen strong gains this year, up more than 11% since early 2020.
After passing decades of its all-time high in December 1989, the Nikkei 225 has soared in recent days to levels not seen since the early 1990s.
However, Nikko Asset Management’s John Vail said the Japanese benchmark index will trade even higher through 2021 as stocks in the world’s third largest economy “shoot for all cylinders”.
North Asia has often been lauded for its relatively strong management of the coronavirus pandemic, with major economies in the region weathering the crisis better than some of their counterparts elsewhere.
The recent rally in Japanese stocks was also partially supported by positive momentum in the coronavirus vaccines space, which sparked gains in many major markets around the world, with the Dow Jones Industrial Average surpassing 30,000 levels.