Japan’s stock market is continuing its upward momentum, reaching fresh record highs even as investors prepare for the possibility of more interest rate increases later this year. Normally, rising rates create pressure on equities, but Japanese stocks are telling a different story.
Strong corporate performance, improved governance reforms, and steady foreign investment are helping to support confidence in the market. Many companies are showing better profitability and shareholder-friendly policies, which is attracting long-term investors.
What makes this move notable is the timing. While higher rates usually slow markets down, Japan’s equities are pushing forward, suggesting deeper optimism about the country’s economic outlook. For now, the market’s strength is proving that expectations of rate hikes are not enough to break investor confidence.