August 09, 2024 at 02:48AM
Julius Baer analyst on the BOJ, JPY and Japnese equities.
no need for the Bank of Japan to raise interest rates much more than it has done
once markets settle 500-odd basis point interest rate differential between JPY and USD will once again be primary
do not see the yen appreciating from here
The supports for Japan’s equity market remain unchanged, including:wage growth of 5+% this year (compared with gains of 7% in the previous 20 years) corporate reform
increased dividend pay-outs and share buy-backs
brand equity that surpasses other Asian countries
a large and liquid market of around 4,000 listed companies
hundreds have returns-on-equity in the high teens and over
earnings’ growth for the Nikkei 225 Index is forecast by the consensus to be 7 per cent this year, and 8 per cent next year.
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I posted earlier on this:
Japanese stocks to rebound after recent sell-off – SuMi TRUST
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ps. Not everyone agrees with these views.
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Nikkei update:
This article was written by Eamonn Sheridan at www.forexlive.com.
