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Analysts Hopeful Japan Rally Is for Real

Tuesday, October 04, 2005 12:56:13 PM
By HANS GREIMEL

A trader sits before a computer terminal during an afternoon session on the Tokyo Stock Exchange in Tokyo Tuesday, Oct. 4, 2005. After more than a decade of decline, Japanese stocks are finally staging a comeback. The Tokyo Stock Exchange's benchmark Nikkei index has shot up 23 percent since May, compared with a flat-lined Wall Street, and hit consecutive four-year highs in recent sessions. The only question is whether the recovery's real or false start like those of the 1990s. This time, however, analysts and investors say there important reasons to be optimistic. (AP Photo/Itsuo Inouye)TOKYO (AP) - After more than a decade of decline, Japanese stocks are finally staging a comeback.

The Tokyo Stock Exchange's benchmark Nikkei index has shot up 23 percent since May, and hit consecutive four-year highs in recent sessions, including Tuesday when it closed above 13,700 points for the first time since May 2001. The big question is whether the recovery can be sustained or will evaporate like those of the 1990s.

This time, analysts and investors say there are important reasons to be optimistic.


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