On April 16th, Schroders Global Investments published a report stating that over the past 30 years, investors have often overlooked the Japanese market when considering how to allocate funds. The booming growth in the 1980s pushed the Japanese stock market to historical highs in 1989, but a subsequent bubble burst prevented it from reaching those levels again. Now, this situation has finally started to change. It is certain that Japanese stocks have returned to investors' attention, surpassing the 1989 peak in February 2024. One important factor is the reforms pushed by the Tokyo Stock Exchange in 2023, encouraging companies to focus on sustainable growth and increasing enterprise value. Schroders Global Investments believes that there are many ways for companies to achieve these goals, including increasing investment in research and development, employee training, new equipment and facilities, and restructuring business models. While these strategies may take some time to yield results, they all lead towards more sustainable growth and increased value for businesses. Another way to increase enterprise value is by distributing dividends or buying back shares (meaning the company repurchases its own stock), thus enhancing shareholder returns. Companies with a higher dividend payout ratio are often more attractive to income-seeking investors. The good news is that Japanese companies generally have the capability to implement some or all of these strategies. 44% of companies are in a "net cash" position (having more cash than debt on their balance sheets), providing them with the flexibility to invest in their business or increase shareholder returns, or even do both. For investors seeking both income and investment growth, this may be a reason why Japanese companies are attractive. Furthermore, the return of inflation is also a factor supporting the Japanese stock market. After a prolonged period of low inflation, even deflation for about 30 years, Japan is now experiencing a modest inflation environment, which is positive for the country. Japan seems to be entering a phase of increased corporate investment, wage growth, and consumer spending, which is expected to be sustained rather than face a downward deflationary spiral. All these factors contribute to making Japan an attractive financial market at present, allowing investors (especially those seeking income and long-term growth prospects) to seize opportunities.