Japan’s Nikkei share average has reached a record high, surpassing its 1989 peak due to a year-long rally fueled by cheap valuations, corporate reforms, and redirected investment flows from a struggling Chinese stock market.
Various analysts and investors have shared their perspectives on this milestone:
– Tsutomu Yamada, Senior Market Analyst at Au Kabucom Securities in Tokyo, views this achievement as the dawn of a new era, signaling an escape from deflation and the beginning of a transformed market landscape.
– Bart Wakabayashi, Branch Manager at State Street in Tokyo, believes that while the market is approaching bubble territory, there has not been aggressive buying of Japanese equities by real-money investors.
– Ayako Sera, Market Strategist at Sumitomo Mitsui Trust Bank in Tokyo, anticipates potential volatility in share prices but does not foresee a significant downtrend, especially if the Bank of Japan changes its monetary policy framework.
– Tohru Sasaki, Chief Strategist at Fukuoka Financial Group, highlights the impact of a weaker yen on corporate earnings and expresses optimism about the continued growth potential for the Nikkei.
– Wei Li, Multi-Asset Quant Solutions Portfolio Manager at BNP Paribas Asset Management in Hong Kong, emphasizes the expected improvements in corporate profitability and shareholder returns following Tokyo Stock Exchange (TSE) reforms.
– Nori Chiou, Investment Director at White Oak Capital in Singapore, predicts further upside for Japan’s stock market this year, driven by heightened interest from global institutional investors.
Reflecting on these diverse viewpoints, it is evident that the Nikkei’s record high has garnered attention from international experts, each offering unique insights into the factors influencing the market’s trajectory. With expectations of continued growth and evolving market dynamics, Japan’s stock market outlook remains a focal point for investors worldwide.
