2024-02-27 09:55:00
The 2-year Japanese government bond yield rose to 0.176%, the highest level since 2011.
Updated February 27, 2024 17:55 CST
Rie Nishihara, chief Japan equity strategist at JPMorgan, said the bull market that saw the end of three lost decades in Japan should be called the “end of deflation” in the market.
Rie Nishihara’s remarks came once morest the backdrop of Japan’s inflation data once once more being on the hot side, with the core consumer price index (CPI) falling to 2% from 2.3%, but higher than the 1.8% expected.
The 2-year Japanese government bond yield rose to 0.176%, the highest level since 2011.
The Nikkei closed little changed at 39,239 points. The index has gained 43% over the past 52 weeks. The yen rose 0.3% today to 150.22 yen per dollar.
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Rie Nishihara, chief Japan equity strategist at JPMorgan, said the bull market that saw the end of three lost decades in Japan should be called the “end of deflation” in the market.
Rie Nishihara’s remarks came once morest the backdrop of Japan’s inflation data once once more being on the hot side, with the core consumer price index (CPI) falling to 2% from 2.3%, but higher than the 1.8% expected.
The 2-year Japanese government bond yield rose to 0.176%, the highest level since 2011.
The Nikkei closed little changed at 39,239 points. The index has gained 43% over the past 52 weeks. The yen rose 0.3% today to 150.22 yen per dollar.
Nishihara said the end of deflation became a market theme following Japan’s core CPI hit 2% for the first time in April 2022. After the Bank of Japan unexpectedly revised its yield curve control policy in December 2022, Japanese stocks bottomed in January 2023.
Nishihara said the Nikkei has a roadmap to reach a sustainable level of 40,000, as the focus now is on the Topix, a market capitalization-weighted index that hit a bubble high of 2,884.80 in December 1989. . Nishihara said the rally in Japanese stocks would have to spread beyond semiconductor stocks for the Topix to rise above that high.
The Topix closed up 0.2% today at 2,678.46 points.
(This article is translated from MarketWatch. MarketWatch is operated by Dow Jones, the parent company of The Wall Street Journal, but MarketWatch is independent from Dow Jones Newswires and The Wall Street Journal.)
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