On the Tokyo stock market on the 22nd, the Nikkei Stock Average rose sharply, breaking the all-time high during trading hours set on December 29, 1989 during the bubble period, reaching the 39,000 yen level.
We asked Masaki Ichihara of the Economic Affairs Department about this.
*Broadcast on the news at 1:00 pm on February 22nd.
*The video is 2 minutes 54 seconds long and cannot be viewed on data broadcasting.
Q.Stock prices hit a new all-time high.
It's been 34 years.
It can be said that Masaki Ichihara's desk
has truly reached a historic milestone.
Japan's economy had been in a period of long stagnation, also known as the lost 30 years, and while we were always aware of the stock price that reached the height of the bubble, it was even thought that it would be difficult to reach that level.
There are various views as to whether this level will continue or whether it reflects the actual situation of the Japanese economy, but market participants believe that it is a symbolic sign that the Japanese economy is at a turning point, emerging from prolonged low growth and deflation. Some say it has meaning.
Q.What are the factors behind the rise in stock prices?
Masaki Ichihara's Desk
The 22nd was triggered by the financial results of major American semiconductor companies, and there are five main reasons for the recent rise in stock prices.
In the United States, major stock indexes continue to hit all-time highs.
In Japan, semiconductor-related stocks and other stocks are pushing up their stock prices on the back of strong financial results.
The Bank of Japan's stance of continuing to maintain an accommodative financial environment for the time being even if it ends its negative interest rate policy has also provided support.
Some have pointed out that foreign investors, who have more influence on the Japanese market than they did 34 years ago, are moving funds from China, where the economy continues to slow down, to Japan.
Q.What is the impact on people's lives and the economy, and what is the outlook for the future?
Those who own Masaki Ichihara Desk
stocks will increase their assets, and since stocks are also used for pension management, investment results are expected to improve.
Companies may also find it easier to raise funds, leading to more active investment.
On the other hand, those who do not have the investment capacity will not receive direct benefits.
Looking at the Japanese economy, consumption and investment lack strength, and it is difficult to say that Japanese companies have the same presence as they did at the time when they were said to have dominated the world.
Although the new record high is a positive sign, I think we need to take a calmer view of future stock price trends and the strength of the Japanese economy.