Instant view: Japan's Nikkei hits record high
(Reuters) — Japan's Nikkei share average hit a record high on Thursday, surpassing its 1989 peak after a year-long rally driven by cheap valuations, corporate reforms and investment flows diverted from a battered Chinese stock market.
Here's what analysts and investors say:
TSUTOMU YAMADA, SENIOR MARKET ANALYST, KABU.COM SECURITIES, TOKYO
«For us traders, this marks the arrival of a new era. It feels like the stock market is telling us that we've finally escaped from deflation and a new world has opened up.
»Compared with 34 years ago, the make-up of the stock market is totally different. Today, looking at the Nikkei average as a profitable security, it's still quite easy to buy. 39,000 is just a waypoint."
JAMIE HALSE, PORTFOLIO MANAGER, PLATINUM ASSET MANAGEMENT, SYDNEY
«There are clear fundamental drivers for this rally and I think those drivers can support further gains going forward. We're still in the early innings of the reforms of corporate governance and capital allocation.
»With growing cash returns to shareholders, I can see the market potentially heading higher."
BART WAKABAYASHI, BRANCH MANAGER, STATE STREET, TOKYO
«We're approaching bubble status here. But interestingly, our custody data isn't showing aggressive buying of Japanese equities by real-money investors. I would tend to think that there's a lot of local money. Maybe the NISA initiative has had a positive effect.
»I'm not in any way denying that there's foreign money flowing into Japan, but I think the foreign investment portion of what has been reported may be a bit overblown. Living in Tokyo, it feels like a bubble, particularly if you look at real estate."
RYOTA ABE, ECONOMIST, SMBC, SINGAPORE
«It's good news, but I think that there is a strong
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