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TOPIX Reaches All-Time High, Signals Market Recovery

9/26/2025

24 3 Full Breakdown

Summary

Story summary

TOPIX surpassed its all-time high in August 2025, signaling a 35-year recovery.
The Nikkei hit new highs over a year earlier, while TOPIX shows broader market health.
Since Shinzo Abe's second term began, TOPIX's total return reached 413%, signaling a shift from two decades of decline.
Reforms have drawn foreign investment, while many stocks remain undervalued, signaling growth potential.

History

Historical Context

The Japanese asset price bubble burst in 1991, leading to a prolonged economic stagnation known as the "Lost Decade." In 2012, Prime Minister Shinzo Abe introduced Abenomics, which revitalized the Nikkei index, achieving a 413% total return for TOPIX by 2025. This recovery reflects a significant shift in investor confidence and marks a potential end to decades of economic decline.

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Story summary

TOPIX surpassed its all-time high in August 2025, signaling a 35-year recovery.
The Nikkei hit new highs over a year earlier, while TOPIX shows broader market health.
Since Shinzo Abe's second term began, TOPIX's total return reached 413%, signaling a shift from two decades of decline.
Reforms have drawn foreign investment, while many stocks remain undervalued, signaling growth potential.

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