Japan Stocks Hit 21-Year High as Investors Shrug Off Concerns
- 7 years ago
Japan Stocks Hit 21-Year High as Investors Shrug Off Concerns
Japan’s main stock index rose to its highest level in almost 21 years on Wednesday, buoyed
by a broad rally in global markets as well as growing optimism about the Japanese economy.
Stock market measures in the United States have also hit new highs in recent weeks, while stocks in South Korea also hit a record on Wednesday.
Markets have been lifted by robust global growth and expanding corporate profits, as
the world finally appears to be shrugging off years of crises and sluggish growth.
On Wednesday, the government said corporate machinery orders, a closely watched indicator of
business spending, had risen for the second month in a row in August, gaining 3.4 percent.
The business cycle also has been favorable: Companies are beginning to spend more to maintain aging factories
and equipment, said Mitsumaru Kumagai, chief economist at the Daiwa Institute of Research.
Japan’s main stock index rose to its highest level in almost 21 years on Wednesday, buoyed
by a broad rally in global markets as well as growing optimism about the Japanese economy.
Stock market measures in the United States have also hit new highs in recent weeks, while stocks in South Korea also hit a record on Wednesday.
Markets have been lifted by robust global growth and expanding corporate profits, as
the world finally appears to be shrugging off years of crises and sluggish growth.
On Wednesday, the government said corporate machinery orders, a closely watched indicator of
business spending, had risen for the second month in a row in August, gaining 3.4 percent.
The business cycle also has been favorable: Companies are beginning to spend more to maintain aging factories
and equipment, said Mitsumaru Kumagai, chief economist at the Daiwa Institute of Research.