🟠For the first time since 2005, the correlation between the Yen and the Topix index has turned positive.

Simply put, the Yen and Japanese stocks are rising together.
Historically in the Japanese market, this is a rare occurrence. Usually, a strengthening Yen puts pressure on stocks because it affects exports. But this time, both are moving upward.
Over the past 12 months:
- The Yen has strengthened by about +1% against the USD
- Topix has increased by +38%
In the past, the pattern of “strong currency + rising stocks” often appeared during long-term growth cycles such as:
- Japan 1982–1990
- Germany 1985–1995
- China 2000–2008
When capital flows believe in a genuine growth story, they buy both financial assets and the domestic currency. The Japanese market is very worth watching—will the government’s efforts bring Japan back to its peak?