Key trends driving Japan’s investment appeal in 2025

A year after hitting record highs, Japan’s equity market remains on a strong trajectory, with several factors driving continued optimism. Wage growth is accelerating, fuelling domestic consumption and strengthening economic fundamentals. Meanwhile, inbound tourism has surged past pre-pandemic levels, providing another pillar of support for growth. Corporate governance reforms are also gathering pace, with the Tokyo Stock Exchange applying greater pressure on companies to improve capital efficiency and transparency. With structural reforms and economic tailwinds aligning, investor confidence...