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.
The organizing committee of the 2020 Tokyo Olympics on Friday showed the original design of Kenjiro Sano's Olympic and Paralympic Games logo embroiled in a plagiarism dispute, backing the Japanese designer's claim that he did not copy a Belgian theater logo. (Kyodo)
The Diet passed a bill Friday aiming to promote the role of women in the workplace, along with greater female participation in the economy at a time when the country's population is expected to shrink further. (Japan Times)
Japan criticized China's official Xinhua News Agency on Friday for having demanded an apology from Emperor Akihito over Japan's wartime acts, saying such a claim was "extremely discourteous to His Majesty the Emperor." (Kyodo)
Japanese Prime Minister Shinzo Abe is likely to be reelected president of the ruling Liberal Democratic Party as early as Sept. 8, as no one apparently plans to challenge him, it was learned Thursday. (Jiji Press)
A bogus smartphone tip spreading through tweets is causing a headache for the National Police Agency as users have been tricked into dialing the emergency number 110 in at least 22 prefectures. (Japan Times)
An American man arrested earlier this month in connection with the death of a Japanese woman whose body was found off the coast of Miura, Kanagawa Prefecture, is expected to face another arrest warrant shortly, this time for killing the woman, an investigative source said Wednesday. (Japan Times)
Koji Yamada, the 45-year-old man who was arrested in Osaka Prefecture last week for abandoning a girl's body, was questioned by police in Tokyo before committing the alleged crime, it was learned on Wednesday. (Jiji Press)
Police raided the headquarters of Japan's largest yakuza syndicate Yamaguchi-gumi on Tuesday after 14 workers at a waste disposal plant in Kobe, western Japan, became sick after treating waste from the building early this month. (Japan Times)
Toyama Prefectural Police on Tuesday arrested a 56-year-old woman for allegedly dumping the body of her father outside their home in Takaoka City. Investigators are now working to apply murder charges, reports the Asahi Shimbun (Aug. 26). (Tokyo Reporter)