---
title: "Euphoria In Japan At Risk With Sky-High Valuations"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/276466150.md"
description: "By Hideyuki Sano, Bloomberg Markets Live reporter and strategistValuations in Japanese stocks are the highest in decades as a “Buy Japan” rally took off after Prime Minister Sanae Takaichi’s decisive election victory, leading investors to question how much upside remains.TheTopixnow trades around 18 times expected earnings for the next 12 months."
datetime: "2026-02-20T16:47:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/276466150.md)
  - [en](https://longbridge.com/en/news/276466150.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/276466150.md)
---

# Euphoria In Japan At Risk With Sky-High Valuations

_By Hideyuki Sano, Bloomberg Markets Live reporter and strategist_

Valuations in Japanese stocks are the highest in decades as a “Buy Japan” rally took off after Prime Minister Sanae Takaichi’s decisive election victory, leading investors to question how much upside remains.

**TheTopixnow trades around 18 times expected earnings for the next 12 months.**

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