Business & Finance
Why Japan should be able to weather a US market crash
Key Points
Why Japan should be able to weather a US market crash Successive Japanese governments have spent decades building financial infrastructure that other Asian countries can emulate These are questions that are likely to be put to the test before long if US stock prices continue their strong upward trajectory, interest rates and inflation keep rising and, as seems likely, the US-Israel war against Iran drags on. What a sharp correction or crash on Wall Street might reveal is how far equity...
Why Japan should be able to weather a US market crash
Successive Japanese governments have spent decades building financial infrastructure that other Asian countries can emulate
These are questions that are likely to be put to the test before long if US stock prices continue their strong upward trajectory, interest rates and inflation keep rising and, as seems likely, the US-Israel war against Iran drags on.
What a sharp correction or crash on Wall Street might reveal is how far equity culture has become structurally embedded into economic systems in Asia and beyond. Japan could well emerge as an exemplar in this regard.
According to Hiromi Yamaji, CEO of Japan Exchange Group, cross-shareholdings have been reduced to the point where they represent less than 10 per cent of total listings on the Tokyo Stock Exchange, compared to over 50 per cent in the 1980s. Yamaji made the remark during a press conference on Japan’s stock market revival held at the Foreign Correspondents’ Club of Japan in Tokyo on July 14.
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