After a prolonged wait spanning more than three decades, Japan’s Nikkei 225 has finally surpassed its peak from 1989, marking a significant milestone for the country’s equity market. According to Deutsche Bank analysts tracking 84 international equity benchmarks, Japan endured the lengthiest stretch without reaching a new high. This achievement, as illustrated in a chart shared with MarketWatch, sets Japan apart from approximately 30 countries globally that have been waiting for a fresh record, with some experiencing declines exceeding 50% from their previous peaks.
Japan’s Nikkei 225 surged 2.2% on Thursday, closing at 39,098.68 and surpassing its December 1989 peak of 38,916. This breakthrough signals a remarkable comeback for Japanese stocks, making the Nikkei one of the few international benchmarks to outperform the S&P 500 in 2023 when measured in yen.
Global Struggles and Elite Languishers
Deutsche Bank’s Jim Reid likened Japan’s record-free period to “Pluto in our [all-time-high] solar system,” emphasizing the uniqueness of the situation. Notably, Italy, Portugal, Greece, Finland, and Cyprus find themselves among an elite group still below their dot-com-era highs nearly 25 years ago. Additionally, a substantial list of countries, including Ireland and China, has gone between 15 and 20 years without achieving a fresh stock-market record.
Deutsche Bank’s Jim Reid likened Japan’s record-free period to “Pluto in our [all-time-high] solar system,” emphasizing the uniqueness of the situation. Notably, Italy, Portugal, Greece, Finland, and Cyprus find themselves among an elite group still below their dot-com-era highs nearly 25 years ago. While some of these countries may appeal to value-conscious investors, Reid urges caution, highlighting weak returns in many European indexes since the turn of the century and advising against attempting to time a potential trend reversal.
Japan’s Nikkei Index Finally Surpasses its Historic 1989 Peak
Japan’s Economic Resurgence and Global Stock Movements
Japan’s Nikkei 225 surged 2.2% on Thursday, closing at 39,098.68 and surpassing its December 1989 peak of 38,916. This breakthrough signals a remarkable comeback for Japanese stocks, making the Nikkei one of the few international benchmarks to outperform the S&P 500 in 2023 when measured in yen. In 2024, Japanese stocks continue to lead among their developed-market peers, showcasing the country’s resilience and economic resurgence. As Japan celebrates its newfound record, global markets, including the S&P 500 and Dow Jones Industrial Average, are on track to secure fresh record highs, underlining the dynamic nature of the current global equity landscape.
