Japanese stocks closed higher overnight as the Tokyo market continued to return to favour.
The Nikkei 225 index gained 1.29%, to reach 22,841.12, and has recently hit four-month highs.
The pattern of the last three months would suggest steady gains, with growth from 22,697.3594 on 17 July to the latest close.
The bubble that burst
But the journey has been a bumpy one, with a low during the period of 21,857.4297 on 13 August and a high of 24,270.6191 on 2 October.
That said, analysts see plenty more upside from Japanese stocks and the market is, consequently, of increasing interest to investors across the world.
Tokyo’s rehabilitation has been a long time coming. Japan’s economy entered a so-called ‘lost decade’ in the Nineties, since which time it has “lost” at least another 15 years.
A huge bubble in equity prices and real estate values had built up towards the end of the Eighties. One valuation put the ground of the Imperial Palace in Tokyo at the equivalent of the entire state of California, while the share price of the telecoms giant NTT was discounting profits centuries into the future.
Japanese business seemed all-conquering as it snapped up prize American assets including the Mobil building in New York and the Columbia Pictures studio.