Japan's stock market has room to go even higher, analysts say

Experts split on whether tech space is overheating

20240306 nikkei average

The Nikkei Stock Average on March 4 topped the 40,000 mark for the first time, buoyed by a surge in semiconductor stocks. (Photo by Yutaka Miyaguchi)

LISA KIM and WATARU SUZUKI, Nikkei staff writers

TOKYO -- The Japanese stock market is not done setting new highs, with some analysts raising their forecasts as semiconductor stocks surge and earnings turn up.

"The themes that are driving Japanese equity markets are fundamental and long-term in nature," such as corporate governance reforms and the gradual transition to inflation, said Yue Bamba, head of active investments at BlackRock in Japan.

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