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.
Fukuoka Prefectural Police on Friday took the acting chairman of the Kudo-kai organized crime group into custody for a shooting death that took place seven years ago, reports the Sankei Shimbun (April 24). (Tokyo Reporter)
Japan's Cultural Affairs Agency said Friday it has put 18 cultural assets on the newly created "Japan Heritage" list in hopes of luring more foreign tourists and revitalizing regional economies. (Jiji Press)
Two men, a male teenager and a female teenager are under arrest on suspicion of abducting an 18-year-old teen from Funabashi, Chiba Prefecture, and holding her captive, police said Friday. (Japan Times)
The Apple Watch launched globally on Friday with a small queue of Japanese tech-addicts lining up in Tokyo for Apple Inc's first wearable gadget, but there was no sign of the excitement usually attached to the company's product rollouts. (Reuters)
An unusually high level of radiation has been detected at a park in Toshima Ward, Tokyo, the ward office said Thursday, prompting speculation that some kind of material has been buried there. (Japan Times)
Tokyo Metropolitan Police on Wednesday announced the arrest of an organized crime member believed to be behind multiple fraud scams involving fake pregnancy accusations, reports TBS News (April 23). (Tokyo Reporter)
On Thursday, police from five prefectures, including Kyoto, arrested two executives of a company operating live streaming site FC2 Live in Osaka on charges of distribution of obscene material, reports the Sankei Shimbun. (Tokyo Reporter)
A pet shop in Tokyo has been ordered to close for not maintaining a clean and safe environment for animals. It is the first time for such an order to be issued by the Tokyo metropolitan government. (Japan Today)
Kunihiko Kase, frontman of the music band "Wild Ones," was found dead at his home in Minato Ward, Tokyo, early on Tuesday. The Metropolitan Police Department is examining the cause of death, with the view the musician may have killed himself. He was 74. (The Japan News)