a slump in the Japanese stock market
Profitability of Japanese listed companies is a benefit of management innovation and profitability improvement.
This year, the investment boom is hot due to abundant liquidity and low interest rates caused by the COVID-19 incident.
U.S. stocks hit a record high, selling investors amid a struggling and waning Korean stocks.
In the previous work, we looked at the Japanese real estate market, which is still strong despite low birthrates and declining population.
This time, we will look at how Nikkei 225 has continued to rise over the past decade, focusing on the Japanese stock market.
The key to many factors is structural reform.
"Data 1" shows the changes in labor productivity in Japan since the 1960s paper series 21J027. Labor productivity refers to the amount of output produced by workers.
In the 1960s, it grew at an annual rate of 8 percent.
In the final analysis, the Japanese stock market sent a "lost decade" in 1990 due to active interest rate hikes in policy as well as a decline in corporate management efficiency.
Koizumi's government pushed for reform strongly
How to deal with a fall in the Japanese stock market!
Recently, the Japanese stock market has been falling sharply.
As of January 19, 2022, the Nikkei 225 index recorded 27,467.23 points, down 4.6% from 28,791.71 points as of the end of December 2021.
Even in this falling Japanese stock market, futures trading can generate large profits through short contracts.