The Nikkei, the Tokyo Stock Exchange index, sweeps away its historic record of 1989. It rose 2.19% this Thursday to 39,098 points, just above the 38,957 points of December 29, 1989, the highest level in its history.
Japanese companies have enormous cash reserves, notes Nicholas Smith, the economist at CLSA Bank in Tokyo. They are restructuring, increasing the number of mergers and acquisitions. And their stock market value remains cheap compared to the American and European markets.