Nikkei 225 breaks key levels
Japanese stocks are now flat year-to-date on a 1.0% rally today.
Japan is a good view on broader economic sentiment. US stocks have been boosted by 150 bps of rate cuts while Japan has been stuck on the lower bound. There have been new programs in Japan including ETF buying but you're essentially pushing on a string.
The next hurdle is getting above the 2020 highs and that's a tougher challenge given that the monetary cards have already been played and Japan won't have another stimulus package until January.
So far though, the message is that stocks can continue to run. Where else are you going to put your money?
