about 3 years ago • 1 min
Japan’s Nikkei 225 index broke the 30,000 level for the first time since 1990 on Monday.
After the rally – fueled by purchases from Japan’s central bank, which is now the biggest single holder of Japanese stocks – the index is even more expensive than the US S&P 500 when compared with this year’s estimated profits.
Japan’s long-derided economy has weathered the COVID pandemic better than most. It grew by an annualized 12.7% last quarter, according to data released on Monday – a faster pace than expected.
The Nikkei 225 needs to climb another 30% to surpass the record of 38,915 reached during the final trading session of 1989 – the peak of the Japanese stock market bubble.
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