The Nikkei 225 index was in the spotlight during the first quarter as it continued to climb. It reached a new high of ¥40,885, which was a 22% increase from its January opening. In comparison to other indices like the S&P 500 and Nasdaq 100, it outperformed with gains of over 10%.

Japanese stocks saw a boost in the first quarter due to strong influx from global investors, many of whom were influenced by Warren Buffett's investments in major trading companies in Japan. Additionally, Tokyo Stock Exchange (TSE) reforms aimed at increasing stock prices have driven companies to increase share buybacks and dividends.

The Nikkei 225 also benefited from a weakening Japanese yen, falling to nearly 152 against the US dollar, prompting government interventions. Despite the Bank of Japan (BoJ) raising interest rates for the first time in 17 years, the yen and index have seen fluctuations due to changing monetary policy.

BoJ officials anticipate further interest rate hikes as wage growth and inflation rise. Wage growth expanded by 2% in January, marking 20 consecutive months of growth, which has been favorable for Japanese exporters like Toyota and Honda.

Despite the positive market trend, not all companies saw gains this year. Fujikura and Fuji Electric experienced significant increases, with shares rising by over 110% and 69% respectively. Meanwhile, Nomura, Mitsubishi UFJ, Mizuho, and Sumitomo Bank saw notable jumps amid hopes for increased net interest income. Softbank also rose by 43% due to strong performance in the technology sector.

Conversely, companies like Fujitsu, Mitsubishi Heavy Industries, Suzuki Motors, Kawasaki Kaisen, and Fujifilm were among the top losers in the Nikkei 225 index, witnessing drops of over 60% this year. Other underperformers include Terumo, Daikin Industries, Sharp, and Yamato.