Tensions and Exchange Rate Fluctuation in the Middle East have led to a weakening of Japan’s record stock market pump, but the weakness appears to be temporary, supported by solid corporate fundamentals and a long-term AI outlook. That’s the view of Koji Nakatsuka, chief investment officer at Allianz Japan’s equity division, which manages $2.4 trillion in global assets. “If everything returns to normal, there is upside potential for Japanese equities by the end of the year. The Nikkei could return to record highs by the end of the year,” he said. In addition, Nakatsuka said that the yen is likely to fall to the 155-158 range, but “most market participants have already expected the government to intervene in the market, so it will be difficult to continue to buy the dollar, shorting yen.” Small-cap stocks that have benefited from the yen’s appreciation will start to catch up with the larger-caps that have led the pump over the past year.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
