The tide has made a decisive turn for the Japanese economy for the first time in more than three decades. After hit by the explosive asset bubble burst in 1990, the Japanese have stayed shy towards the stock market. There are many among the elderly who prefer to keep their cash hoarded at home. There had been a bizarre case of billions of yen notes gathering mold after being stored in boxes instead of banks which offered zero returns for deposits for decades.
The Japanese have been stock-phobic after Japanese stocks sank to one-fourth of its value after the bubble burst. But they are flocking back to the market after the Nikkei index hit above 30,000. Money waiting to buy stocks swelled to 15 trillion yen ($10.7 billion), the largest since 1997.
Japan is seeing a meaningful change in wages, one of the perennial problems for the world’s third-largest economy during its lost-decades period. Wages have stayed stagnant as the country’s interest rate stuck in the zero territory for 30 years.
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