Japan on the rise: New demand source may be needed to sustain equity market's impressive gains

Vaccines and stimulus alone not enough for long term

The Japanese equity market has been on an impressive run over the past month, with the Nikkei Stock Average rising to its highest level in nearly three decades.

A factor behind the Japanese market's gains, and those of the global markets as a whole, has been expectations of the development and rollout of Covid-19 vaccines. Hopes for government stimulus also gave the market an extra boost. In addition, expectations that non-contact business segments (such as teleconferencing and medical treatment providers) would enjoy growth in a "new normal" brought about by the pandemic have also supported the market.      Suganomics is coming to Japan - and it wants to unleash a digital revolution    While the aforementioned factors have certainly helpe...