02
Dec
Nikkei lacks catalyst to test 42,000
Economic momentum still weak. Slightly better end to the year. Consumption resilient. More restrictive monetary policy. Yen stabilizes at around 145 against the USD. Avoid bonds. Reduced outlook for the Nikkei.
Key points
- Economic momentum remains weak in Japan
- Last quarter of 2024 probably a little better
- Leading indicators remain uncertain
- Consumption resilient but cautious
- Inflation rebounds in line with BoJ expectations
- BoJ determined to gradually tighten monetary policy
- Bond market still unattractive
- Could the yen appreciate?
- Nikkei fails the expected 40,000 test
