Nikkei Expected to Keep Rising in 2015

Japan’s benchmark Nikkei 225 index is set to climb further in 2015, despite already rising more than 70 percent over the past two years, analysts say.

“Corporate earnings will be stronger, and drive up the Nikkei to 22,500 by September,” said Eiji Kinouchi, Daiwa Securities’ chief technical analyst and one of Tokyo’s leading bulls. He is forecasting the Nikkei will end the year at 22,000. Daiwa forecasts the U.S. dollar will fetch around 124-134 yen in the autumn, but the pair will likely slip back to around current levels of 120 yen by the end of 2015.

Earnings growth for major Japanese companies will likely be in the double digits and help to bolster Japan’s shares, according to a Jefferies note. That, the brokerage’s analysts believe, will lift the Nikkei to 19,500 even if the yen stabilizes at the current 120 yen level against the dollar. Jefferies is forecasting the U.S. dollar will strengthen to 124 yen in a year’s time.

Some are a little more cautious. “The dollar-yen moved a lot in 2014 and there are some headwind risks lurking ahead next year, such as the Greek elections, the Russian ruble crisis and volatile oil prices,” said Kengo Suzuki, Mizuho Securities’ chief currency strategist.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza