Call Japan rally the ‘end of deflation’ market, says JPMorgan strategist


Share post:

The current bull market that has seen the end of Japan’s lost three decades should be called the “end of deflation” market, says JPMorgan’s top Japan strategist.

The note from JPMorgan’s Rie Nishihara came as inflation data out of Japan once again came in on the hot side, with core CPI sliding to 2% from 2.3% but topping estimates of 1.8%.

The yield on the 2-year Japanese government bond
rose as high as 0.176%, the highest level since 2011.

The Nikkei 225
finished virtually unchanged at 39,239. It’s up 43% over the last 52 weeks. The Japanese yen rose 0.3% to 150.22 per U.S. dollar.

Nishihara said the end of deflation became the theme after core CPI reached 2% for the first time, in April 2022. Share prices bottomed in Jan. 2023 after the Bank of Japan’s surprise revision of its yield curve control policy, which happened the previous month.


She said there’s a roadmap to a sustainable level of 40,000 on the Nikkei 225, as the focus is now on the Topix
the market cap-weighted index which had a bubble high of 2,884.80 in Dec. 1989. Share price gains need to spread beyond semiconductor stocks for the Topix to take out that high, Nishihara said.

The Topix finished at 2,678.46, up 0.2% on the day.

Source link

Alexandra Williams
Alexandra Williams
Alexandra Williams is a writer and editor. Angeles. She writes about politics, art, and culture for LinkDaddy News.

Recent posts

Related articles

Trump Media’s DJT stock rises again after call to stop ‘naked’ short selling

Trump Media & Technology’s stock rallied Friday and was headed for a third straight gain after the...

P&G’s stock falls after sales miss, as baby and health-care volumes declined

Shares of Procter & Gamble Co. slipped Friday, after the consumer packaged-goods company reported fiscal third-quarter sales that...

Constellation Brands moves itself further away from cannabis grower Canopy Growth’s business

Alcoholic-beverage giant Constellation Brands Inc. on Thursday announced a number of moves intended to further wash its...

Nordstrom confirms it’s looking to go private, with founding family interested in deal

Nordstrom Inc. has formed a special committee of independent directors to explore going private, the company said...

AMC poised for market-share gains, boosted by premium screens and concert movies, Wedbush says

Movie-theater chain and original meme stock AMC Entertainment Holdings Inc. is well positioned to grow its market...

Equifax says weaker mortgage demand is weighing on its business

Shares of Equifax fell after hours on Wednesday after the credit-scoring giant reported first-quarter revenue that missed...

Biden calls for tripling tariffs on Chinese steel, probing Beijing’s potential unfair trade practices in shipbuilding

President Joe Biden’s administration on Wednesday rolled out new measures that aim to protect U.S. industries and...

ASML orders miss estimates as CFO says it’s still on track to meet 2025 goal

ASML Holding, the Dutch microchip equipment maker whose machines are so high tech that the U.S. limits...