01
Mar
Nikkei tackles its all-time 1989 record
Japan is in recession. Another difficult start to 2024. Inflation finally falls. No solution for the Japanese currency. Monetary policy will remain accommodative. The Nikkei attacks the all-time record set in 1989.
Key points
- Q4 GDP confirms our forecast of a moderate recession in Japan at the end of 2023
- Outlook for Q1 2024 remains weak
- Further decline in leading indicators
- Contraction in real household income
- Inflation falls sharply despite yen weakness
- BoJ monetary policy still accommodative
- Yen bond market unattractive
- No solution for the Japanese currency?
- Nikkei approaches all-time high of 40,000
