Japan will be a policy pioneer for advanced nations

Significance It took policymakers decades to tackle the consequences of the market crash, partly due to conservative caution; this experience has encouraged other states to be more interventionist and aggressive in response to a crisis. Japan now finds itself in a better position, with GDP growth rates -- a vital ingredient for stock market recovery -- somewhat closer to US levels. Impacts Unlike US markets, Tokyo's is not being propelled by a handful of high valued stocks; its rise will continue to be more broadly based. Corporate governance initiatives are effective; in the past decade buybacks have tripled and low-return, strategic shareholdings lost 20%. Warren Buffett invested heavily in Japan’s trading firms in 2020 and this year, citing shareholder-friendly policies compared to US firms.