What is the average annual return of the Japanese stock market?

Written by Editorial Team | Last Updated: August 2026

Historical performance data for the Japanese stock market, benchmarked primarily by the Nikkei 225 index, demonstrates variable multi-decade returns. Following extended periods of macroeconomic stagnation through the late 20th century, the index has experienced strong revitalization, delivering annualized returns of roughly 8% to 12% over various 10-year and 20-year trailing horizons, supported by corporate governance reforms, aggressive monetary policy adjustments, and rising international investor confidence.

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