Edward Chancellor: Japanese Stocks' Strong Run Fueled by Low Corporate Debt and Cheap Currency

Japanese stocks, which had delivered negative returns for decades, are now experiencing a strong run due to factors such as low corporate debt, a cheap currency, and a shift in power towards shareholders. Edward Chancellor, speaking on @Breakingviews, suggests that this trend could last for years. In 1990, Japanese stocks were overpriced and less profitable, but the situation has since changed with deflation giving way to mild inflation. Additionally, credit managers are anxiously awaiting data to determine if a Japanese pullback from US corporate bonds in August was an isolated event or the start of a trend.