Yen and Topix Index Correlation Turns Positive

The correlation between the yen and Japan’s Topix stock index has turned positive for the first time since 2005, marking a significant shift in the Japanese market. This development indicates that both the yen and Japanese stocks are rising together. Over the past year, the yen has gained 1% against the U.S. dollar, while the Topix index has surged by 38%. Historically, such positive correlations have been observed during prolonged bull markets in various countries.