Feb 9 โ€ข 10:19 UTC ๐Ÿ‡ฏ๐Ÿ‡ต Japan Asahi Shimbun (JP)

Who is Creating the Record High Stock Prices? The Disparity Left Behind with Unrealized Gains of Tens of Millions

The Tokyo stock market experienced a record surge in response to the ruling party's election victory, but concerns about overheating and inequality persist.

On the 9th, the Tokyo Stock Exchange marked a historic surge following the unexpected landslide victory of the ruling Liberal Democratic Party in the House of Representatives election. The Nikkei average jumped more than 3,000 yen early in the morning, surpassing the significant threshold of 55,000 yen, and reaching an all-time high of 57,337 yen during trading hours. This impressive rise, however, is accompanied by growing concerns about market overheating and the reality that many individuals are being left behind without reaping the benefits of this stock market boom.

Despite the impressive rises in stock prices, there were signs of apprehension from domestic institutional investors who placed heavy selling orders as soon as trading commenced. They expressed beliefs that the rapid increase was excessive, stating, "Isn't it a selling opportunity?" This sentiment of caution reflected an underlying anxiety about the long-term sustainability of such high stock prices. By the end of the trading day, the gains had moderated, and the Nikkei closed at 56,363 yen, indicating that while there was short-term momentum, the market may be vulnerable to corrections.

The article suggests that while foreign investment played a pivotal role in this stock boom, the prevailing overvaluation fears led to an increase in selling pressure right from the start of the trading session. This situation raises critical questions about who is truly benefiting from these record-high stock prices and highlights the growing wealth disparity as some investors report unrealized gains in the tens of millions while many others are left without similar opportunities to benefit from the rising market.

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