After a blow-out 2013, Japan's stock market seems to have lost its luster, but according to global research house Capital Economics the Nikkei is set for a dramatic turnaround.
"The prospect of renewed outperformance in the Nikkei is good, especially with the possibility of further aggressive stimulus," Julian Jessop, chief economist at Capital Economics said at the company's annual conference in Singapore on Wednesday.
Capital Economics sees the Nikkei rallying 20 percent from its current level of around 14,093 to 17,000 by fiscal year end in March 2015. It expects the index to reach 18,500 by March 2016.
This would mark a dramatic turnaround for the Nikkei which has fallen 13.2 percent year to date, giving up a large chunk of last year's 55 percent rise.
Concerns over the impact of a consumption tax hike in April coupled with uncertainty over Japan's structural reforms led some investors to lose faith in Abenomics - the aggressive plan unveiled by Prime Minister Shinzo Abe in 2013 to revitalize the economy through monetary stimulus, fiscal spending and structural reform.
Capital Economics shares these concerns, but believes further aggressive monetary stimulus from the Bank of Japan (BOJ) will reinvigorate the country's stock market, propelling it higher over the coming years.
Japan set forth its plan for the restart of two reactors at the Sendai power station in the country's southwest at a five-day annual meeting of the International Atomic Energy Agency that began on Monday. (Jiji Press)
Prime Minister Shinzo Abe has given up hosting Russian President Vladimir Putin in Japan this fall, but hopes to hold talks with him during the Asia-Pacific Economic Cooperation forum's summit in Beijing in November, Japanese government sources said Monday. (Kyodo)
Poisonous mushrooms mistakenly sold at a highway rest area in Takashima, Shiga Prefecture, have caused food poisoning to at least two people, the Shiga Prefectural Government said Sunday. (Japan Times)
Tokyo Metrpolitan Police on Monday arrested two suspects, including a former organized crime member, on drug charges inside an apartment in Shinjuku Ward, reports Nippon News Network (Sept. 22). (Tokyo Reporter)
Two vending machines were torched and the money taken from them in Tokyo's Katsushika Ward on Saturday morning, bringing to 19 the number of vending machines which have been destroyed by fire in the area since Sept 15. (Japan Today)
Police in Tokyo said Friday they are looking for a man who sprayed a 17-year-old girl with a liquid resembling paint thinner as she walked home on Wednesday night-the third such incident to occur in the area since last month. (Japan Today)