22
Sep
Possible turning point for the Nikkei
Resilient economy. Household consumption is recovering. Leading indicators still uncertain. Inflation still too high. No further rate hikes before 2026. Probable rise in the yen. The Nikkei is at an inflection point.
Key points
- Slowdown in Households are spending, but businesses are hesitant
- Slowdown likely until the end of the year
- Composite PMI supported by services PMI
- Resilient consumption supported by wages
- Inflation weakens slightly but remains too high
- No BoJ rate hike before 2026
- The bond market remains unattractive
- Interest rate differentials favorable to the yen
- Possible turning point for the Nikkei
