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Business1 hr ago

Japan Seen as Shielded from Potential US Stock Collapse

By TrendingWire Newsroom

As US stock markets hit record highs, fueled by heavy investment in artificial intelligence, experts question whether other markets would follow if Wall Street crashes. Japan, however, may be better positioned to withstand such a shock, analysts say. The country's economy has historically shown resilience, partly due to its strong domestic investor base and less exposure to AI hype compared to the US. Additionally, Japan's central bank maintains a cautious monetary policy, which could buffer against sudden capital outflows. Geopolitical factors, such as the ongoing US-Israel conflict with Iran, add uncertainty, but Japan's diversified trade relationships and energy efficiency reduce its vulnerability. While a US market downturn would inevitably impact global markets, Tokyo's relatively conservative valuation and different economic drivers might limit losses. Observers note that Japanese companies have been focusing on stable growth rather than speculative trends. Thus, even if US stocks tumble, Japan could avoid a severe crisis, though not completely immune.

Sources: SCMP
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