For the first time in decades, Japanese stocks are back in the spotlight.
This is shown by the rise of the Nikkei 225 benchmark and the Topix index which reached a more than 30-year high in the last few weeks.
The strengthening has been driven by foreign investors entering Japan's equity markets with a consistency rarely seen in at least a decade.
In fact, today the Nikkei 225 returned to action by jumping 2% past the important level of 33,000 for the first time since July 1990, while the Topix rose 1.46%.
This was also followed by strengthening in the Asia-Pacific market following the encouraging performance of Wall Street ahead of the publication of the United States inflation report and the Federal Reserve (Fed) policy meeting.
Back to the original title, why are Japanese stocks so hot lately?
Analysts consider the Tokyo Stock Exchange's recent action to be a 'game changer', by finalizing its market restructuring rules.
Exchange operators want to ensure that companies achieve sustainable growth and increase corporate value in the medium to long term.
It is conducted by focusing on the cost of capital and profitability based on the balance sheet, rather than just sales and profit levels on the income statement.
In addition, world leading investment icon Warren Buffett's 'bullish' view of Japanese equities has also helped boost foreign investors' confidence.
As proof, Buffett's shares of Mitsui & Co rose to a high of $37 today, after being supported by Jefferies Financial Group Inc who raised their price target by more than 40%.
