November 2005  Despite many years of poor market returns Japan still holds its place as the world's second largest stock market and the last twelve months has seen a 33 percent rise in the Tokyo Stock Price Index.

Foreign Investment

Much of this rise can be attributed to a record increase in overseas investment with foreign Japanese share buying outstripping selling by almost $79 billion during 23 consecutive weeks. This exceeds the last high, which dates back to 1999. The global economic recovery has been a major factor in drawing this investment as well as the recent restructuring seen throughout the Japanese economy. This optimism has not been shared by Japanese investors and has seen domestic institutions with share sales outstripping buys. Some analysts point out that prices have now been pushed to a point where Japan may seem less value than other countries.

Consumer Recovery?