Japan's market is hitting record highs. What to know about the rally and how to play it

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The Nikkei 225 has reached its highest level since 1989, and it could see some more upside ahead.

U.S. equities aren't the only ones on a bull run — the Japanese stock market is also enjoying an upward climb. Last week, Japan's benchmark Nikkei 225 Index hit its highest level since 1989. This comes more than three decades after the economy began to suffer from stagflation. The Nikkei 225 is now up more than 19% year to date and nearly 39% over the last 12 months. This has outpaced the S & P 500' s 7.4% gain in 2024 and 30.7% in the past year. .N225 .

carries an expense ratio of 0.48%, and it has a total return of about 10.2% in 2024. Transitioning out of deflation Rate policy has been another big factor in the recent market rally. In Japan, however, investors are cheering the news that the central bank is finally going to raise interest rates from their current negative levels, indicating a shift toward inflation after decades of chronic deflation.

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