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Markets

Investors are flocking to Mothers, Japan's emerging equity market

Index's 80% surge since March bottom beats Nasdaq and other global rebounds

Ficha, which develops image recognition software based on machine learning, debuted Wednesday on Japan's Mothers index of emerging companies. The Mothers has been on a tear since the middle of March, even outperforming the Nasdaq. (Nikkei montage)

TOKYO -- Japan's Mothers index, an equity benchmark comprised of emerging companies, has gained strong momentum after hitting a bottom in mid-March. Investors are buying on hopes that AI-led digital transformation, cyber security and greater use of the internet of things spurred by the coronavirus will fuel growth for many of the young businesses.

Mothers has skyrocketed over 80% since its March low, nearly double that of the Nasdaq's recovery in the same period. Other major global benchmarks have also rebounded following support by central banks and eases in city lockdowns. However, most indexes remain in negative territory in their year-to-date performance. Mothers, though, has risen 17%, beating Nasdaq's 12% gain.

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