On Monday of this week, the Nikkei 225 index in Japan broke through the 40000 point mark, a historic milestone that global market analysts and investors cheered.
The rise of the Nikkei 225 index to over 40000 points can be attributed to several factors: a sharp increase in global demand for technology stocks, especially in the field of artificial intelligence; The promotion of loose monetary policy by the Bank of Japan; In addition, the weak yen has also played a crucial role, enhancing the competitiveness of Japanese export products on the global stage.
Jesper Koll, an economic expert at the Japanese financial group Monex Group and Governor of the Bank of Japan, and a male student, accurately predicted a record high of 40000 points. Now, he has given the latest forecast that the Nikkei Index will rise by another 37% by the end of 2025, with a target of 55000 points.
Koll's optimism stems from Japan's strong private sector performance and the company's outstanding profitability. In recent years, Warren Buffett's increase in holdings in the five major Japanese companies has also strengthened people's confidence in the Japanese stock market.
On Tuesday (March 5th), the index slightly fell from Monday's high, but remained above 40000 points. As of publication, the Nikkei 225 index closed at 40070.50 points.
Strong Private Sector in Japan
Koll emphasized that a significant portion of Japan's economic potential comes from the private sector. Japanese companies have achieved excellent profitability through a management concept called Kaizen (Continuous Improvement). This method not only improves productivity, but also cultivates an innovative and efficient corporate culture within Japanese companies.
Koll's analysis shows that from 1995 to 2022, the sales of companies listed in the East China Composite Index increased by 1.1 times, while earnings per share surged by 11 times, surpassing the performance of companies listed in the S&P 500 Index during the same period. This significant growth highlights the effectiveness of Japanese corporate management strategies in creating enormous economic value.
He also emphasized that Japan's commitment to strengthening corporate governance and attracting international investment remains firm. Measures to increase shareholder value, promote board diversification, and enhance transparency have made Japanese stocks increasingly attractive to global investors.