Japan’s Soaring Stocks Trigger Memories of 2024 Market Crash

The rally in Japanese stocks has pushed some market indicators close to levels struck ahead of last year’s meltdown, after a US trade deal propelled equities to a record.

“When the market starts rising this quickly, I do think we need to be cautious with what happened in August in mind,” said Hisashi Arakawa, director and the head of equities at abrdn Japan Ltd. “This time around, it’s not the yen driving the rally but I’m definitely keeping a close eye on the levels we saw during last summer.”

Japanese stocks crashed last August in the wake of ...