The correlation between the yen and Japanese stocks is weakening, challenging the belief that a weak yen benefits Japanese stocks.
Despite fluctuations in the yen, the Topix index has remained within a narrow trading range.
Market analysts suggest that the Bank of Japan's hawkish stance is contributing to this decoupling, as investors reassess the impact of currency strength on equity performance.
The recent volatility in the yen has not resulted in corresponding movements in the Topix, indicating a potential shift in market dynamics that could redefine investment strategies in Japan.