The Japanese stock market has been on a roller coaster ride in recent years, with significant fluctuations and changes in trends. One of the biggest developments in the market has been the increasing presence of foreign investors. According to data from the Tokyo Stock Exchange, the percentage of foreign ownership in Japanese stocks has reached a record high of 31.8% in September 2021. This trend can be attributed to the ongoing efforts of the Japanese government to open up its market to international investors, as well as the attractive valuations of Japanese stocks compared to other developed markets.

Another major trend in the Japanese stock market is the rise of ESG investing. ESG stands for Environmental, Social, and Governance, and refers to a set of criteria used to evaluate a company’s sustainability and ethical impact. In recent years, there has been a growing interest in ESG investing among Japanese investors, with many companies incorporating ESG principles into their business practices. This has also led to the emergence of ESG-focused funds and indices, providing more investment opportunities for individuals and institutions interested in socially responsible investing.

As the Japanese stock market continues to evolve and adapt to changing global trends and demands, it presents both challenges and opportunities for investors. Keeping a close eye on the latest developments and trends can help investors make informed decisions and capitalize on potential opportunities in this dynamic market.