The Nikkei Stock Average has risen 26% in yen terms this year, though this gain gets trimmed to 18% in dollar terms. (Source photo by AP)

Japanese stock rally looks less impressive in dollar terms

Rally more sustainable if accompanied by a moderately stronger currency, analysts say

MITSURU OBE, Nikkei Asia chief business news correspondent

June 26, 2023 06:00 JST

TOKYO -- Japanese stocks are by far the best performers globally this year, with the Nikkei Stock Average gaining 26% so far and trading near a 33-year high.

But in dollar terms, the gains are only 18%, according to QUICK FactSet. This means an American investor would have earned a return of 18% by investing dollars into Japanese stocks, due to an 8% drop in the yen's value against the greenback.