SYDNEY (Reuters) – The Nikkei 225 share average, Japan’s best-known stock benchmark, on Monday still stood 40% below its historic peak hit three decades ago, while its lesser-known sibling, the Nikkei 500, surged past its previous peak to a record high.
The Nikkei 500 <.N500> has gained 7.7% so far this year, compared with a 0.6% fall in the Nikkei 225 <.N225>. In dollar terms, the 500 has risen more than 11%, handily beating 2.1% gains in the U.S. S&P 500 <.SPX>.
“The Nikkei 500 is showing one of the greatest performances among the world’s major stock indexes. Its chart shows that if you invest carefully in Japanese stocks, you can actually outperform the S&P 500,” said Richard Kaye, portfolio manager at French asset management firm Comgest.
(Graphic: Nikkei 500-hidden star performer – https://fingfx.thomsonreuters.com/gfx/mkt/qzjpqnoqdvx/200928N.png)
Japanese equities in general lag behind their Wall Street peers, with many foreign investors staying away