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Wall Street sees further upside for Japan stocks as they notch a fresh three-decade high


The World’s busiest pedestrian crossing© Marco Bottigelli | Moment | Getty ImagesWith Japanese stocks suddenly back en vogue with global investors, analysts at top Wall Street investment banks are predicting more upside for the country’s benchmark indexes.Japan’s Topix (Tokyo Price Index) has marked new peaks in the past two weeks, seeing its highest level since July 1990 on Monday. It’s notched a 14% jump since the beginning of this year, most recently fueled by optimism from a tentative debt ceiling deal reached between U.S. President Joe Biden and House speaker Kevin McCarthy, alongside a boost from a weakening yen. Meanwhile, the Nikkei 225 has rallied further, having gained some 20% year-to-date.Goldman Sachs strategists wrote in a Monday research note that foreign investors’ positioning on stocks in Japan is still underweight.”Whereas we believe positioning is stretched among short-term investors such as CTAs (Commodities Trading Advisors), …

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