Japan’s stock market rebounds to near record highs despite last year’s crash

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A year after the yen’s sudden rebound rattled markets, Japanese stocks are now steady. They’ve been supported by clearer BOJ guidance, corporate reforms, and a softer US tariff deal. Japan’s stock market has withstood two fierce downturns, including a substantial reversal of the carry-trade approach, where traders leverage cheap yen funding to acquire more profitable overseas assets. On August 5, 2024, a surprise interest-rate rise at the Bank of Japan sparked about a 12% downturn in the country...