Julius Baer analyst on the BOJ, JPY and Japnese equities.
- no need for the Bank of Japan to raise interest rates much more than it has done
- once markets settle 500-odd basis point interest rate differential between JPY and USD will once again be primary
- do not see the yen appreciating from here
The supports for Japan’s equity market remain unchanged, including:
wage growth of 5+% this year (compared with gains of 7% in the previous 20 years)
corporate reform
- increased dividend pay-outs and share buy-backs
- brand equity that surpasses other Asian countries
- a large and liquid market of around 4,000 listed companies
- hundreds have returns-on-equity in the high teens and over
- earnings' growth for the Nikkei 225 Index is forecast by the consensus to be 7 per cent this year, and 8 per cent next year.
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I posted earlier on this:
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ps. Not everyone agrees with these views.
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Nikkei update:
