Bank of America Merrill Lynch has said it is currently bullish on longer-term prospects for listed Japanese equities, as the Nikkei has the potential to jump 20% by the end of 2017 to 20,000 points.
It said Japanese equities face downside pressure from macro events this autumn, but pessimism is stretched from a long-term perspective. The group expects this sentiment to gradually reverse in the coming months and the market to regain its bull trend into 2017. What is the right strategy when investing in Japan? BofA Merrill Lynch said the strength of the yen this year - a dollar currently buys ¥101.61 - has led to speculative yen buying and increased FX hedging of foreign assets by domestic investors, creating a backlog of yen-bearish "magma". "We see this magma eventually 'erup...
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