Japan's Nikkei seen rallying 6% to key 30,000 level by mid-2023 – Reuters poll
|Japan's Nikkei 225 share average will rally to the psychological 30,000 level by the middle of next year for the first time since September 2021, per the latest Reuters poll.
The survey findings also mentioned that investors see inflation peaking in the United States and elsewhere, which could cause governments to loosen monetary policy.
“Lower interest rates or higher economic growth would improve the outlook for Japanese corporate profits,” adds Reuters poll.
More findings
Risks to the outlook include the extent of the global economic slowdown and China's renewed COVID clampdowns, which are resulting in social unrest.
The median estimate of 11 analysts polled Nov. 14-28 was for the Nikkei to be at 30,000 in end-June, although that represents a medium-term plateau, with the poll putting it at that level at the end of next year as well.
There was a split over the outlook for Japanese firms' financial results over the next six months though, with four analysts expecting an improvement and three predicting a deterioration.
Many said Japanese stocks would need to take another leg lower sometime in the first half of next year before rallying.
Also read: USD/JPY slides towards 138.50 on mixed Japan data, pullback in yields, focus on China, Fed talks
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