I noticed an interesting trend in the stock market. After the Liberal Democratic Party’s victory in elections in Japan, analysts began discussing the potential of the Japanese number more actively. According to Jin10, foreign investors are clearly overestimating the Japanese market and are ready to seriously increase their positions.

What’s going on here? The new prime minister, Sanae Takaichi, received a clear mandate to carry out ambitious spending plans. This triggered a wave of interest in Japanese stocks, which could turn into a large influx of capital. It’s said that foreign purchases could rise fivefold in the coming months, which would be even higher than during Abe’s time.

Experts at Nomura Securities calculate that if the Takaichi administration really carries out its plans to stimulate economic growth, net foreign purchases could reach approximately 10 billion yen—about $64 billion—in three months. Investors are betting on improved growth rates, corporate reforms, and reflation, which is favorable for corporate profitability.

This is a serious signal for those who track the Japanese number. It seems that global players really do see potential in the Japanese market and are ready to act accordingly.