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Foreign Investors Reassess Japan Bets Amid Governance Reform Uncertainty

International investors are growing wary of potential reversals in Japan's corporate governance overhauls, threatening to derail a market surge that lifted equities to record highs this year. The governance framework has been a cornerstone of foreign capital inflows into Japanese markets, particularly in technology sectors. As the Nikkei 225 continues climbing on renewed global optimism and domestic strength, market observers warn that policy retreats could undermine structural improvements. These improvements have been key to attracting overseas funds. Sustaining foreign capital flows requires continued commitment to governance standards.