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Japan stocks' 25-year high masks need for deeper reform

Structural change letting startups thrive is needed to boost market growth

Deep structural reforms are needed to keep the Nikkei Stock Average climbing past its latest high.

TOKYO -- The Japanese stock market's new post-bubble high is an encouraging sign of investors' confidence in corporate performance and governance. But with much-needed structural reforms stalled and American and Chinese companies far in the lead in terms of market capitalization, Japan Inc. is in no position to celebrate just yet.

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