A man looks at an electronic boarddisplaying stock prices of Nikkei 225 listed on the Tokyo Stock Exchange along a street in Tokyo on April 24, 2024.
KAZUHIRO NOGI/AFP via Getty Images
Suddenly, the 25% surge in the Nikkei 225 Stock Average these last 12 months leaves Japanese officials with some explaining to do.
The problem is the gulf between economic conditions underlying this record rally, one pushing Tokyo stocks above 1989 highs. Case in point: the 2% contraction in gross domestic product in the first quarter year-on-year.
Economists — and stock bulls — trying to explain away an ill-timed downshift don’t have a good answer…
