What are the main stock market indices in Japan?

The two most prominent indices are the Nikkei 225, a price-weighted index of 225 top companies, and the TOPIX (Tokyo Stock Price Index), a market-capitalization-weighted index covering all domestic stocks on the Tokyo Stock Exchange's Prime Market.

What factors influence the Japanese stock market?

Key factors include Japan's economic growth, corporate earnings, monetary policy from the Bank of Japan, global economic trends, geopolitical events, and the strength of the Japanese Yen against major currencies.

Is the Japanese stock market open to foreign investors?

Yes, the Japanese stock market is highly accessible to foreign investors. They can invest directly through international brokers or indirectly via exchange-traded funds (ETFs) and mutual funds focused on Japanese equities.

What is 'Abenomics' and how did it affect the market?

Abenomics refers to the economic policies implemented by former Prime Minister Shinzo Abe, comprising monetary easing, fiscal stimulus, and structural reforms. These policies aimed to combat deflation and boost economic growth, significantly impacting the stock market through increased corporate profits and investor confidence.

What role does the Bank of Japan (BOJ) play in the stock market?

The BOJ plays a significant role through its monetary policy, including interest rate decisions and quantitative easing. Historically, the BOJ has purchased ETFs tracking Japanese equities, directly influencing market liquidity and supporting stock prices.