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 death toll from landslides in Hiroshima increased to 70 on Wednesday, while 18 people remained missing after the first of the rain-induced landslides hit the northern part of the western Japan city on Aug. 20. (Jiji Press)
Users of free wireless Internet connections at Japan's Narita, Kansai and Kobe airports are vulnerable to electronic eavesdropping of their e-mail and web browsing, a study by an information and communications specialist showed Tuesday. (Bangkok Post)
The number of babies born in Japan in the January to June period dropped 2.7 percent from a year earlier to 496,391, pointing to the possibility of the annual figure slipping below the 1 million mark for the first time on record, government data showed Tuesday. (Japan Times)
A Japanese district court ordered Tokyo Electric Power Co. on Tuesday to pay some 49 million yen in compensation over the suicide of an evacuee from the March 2011 nuclear accident at the company's Fukushima No. 1 power plant. (Jiji Press)
Thai police said Monday (Aug 25) they have questioned five women who were paid up to US$12,500 each by a Japanese man known to them as "Jack" to act as surrogate mothers. The case emerged after nine babies were found with nannies in a Bangkok apartment. (channelnewsasia.com)