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 Supreme Court dismissed Thursday a lower court ruling that nullified suspensions and other disciplinary action against two male members of a company in Osaka due to sexual harassment in the workplace. (The Japan News)
Luxury marque Montblanc is to sell fountain pens made from a "miracle pine" tree that survived the 2011 tsunami, for a hefty $4,400, an official said, with just 20 percent of takings donated to local people. (AFP)
The mobile phone records of a 13-year-old boy who was found fatally stabbed last week along the Tama River in Kawasaki show the Line messaging app was used to contact a former schoolmate just around the time he was killed, it was learned Thursday. (Japan Times)