Japan's stock market boosted by revamped NISA and seasonality

After minor profit-taking, Nikkei Stock Average on a rise, seeking new high

International investors purchased 384.1 billion yen of Japanese stocks last week after buying the largest amount since June in the previous week. (Photo by Nanami Sato)

LISA KIM, Nikkei staff writer

January 30, 2024 12:03 JST

Updated on January 30, 2024 16:29 JST

TOKYO -- The surge in Japan's markets this year is drawing comparisons with that of last year, but the new tax-saving program and seasonality are unique drivers of the latest rally.

A reason international investors are entering Japan is tied to expectations that retail investors will buy more Japanese equities through the new tax-saving investment program Nippon Individual Savings Account (NISA), said Masatoshi Kikuchi, chief equity strategist at Mizuho Securities.