Story perspectives
Tokyo Stocks Soar as Foreign Investment Boosts Market
9/3/2025
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Story summary
- Japanese financial markets are seeing a reflation trade, with Tokyo shares hitting record highs due to foreign investment.
- Domestic investors have withdrawn $23 billion this year, citing uncertainty over U.S. tariffs.
- The Bank of Japan's interest rate hike has led to a shift from bonds to equities, benefiting industrial stocks.
- Analysts predict additional stock market gains if retail investors re-enter the market.
