A markets chief at one of Japan’s biggest life insurers is expecting the nation’s shares to break more records as political uncertainties fade after key elections.
The all-time high for the 225-issue Nikkei average of 42,224.02, set in July, will probably be "just a passing point,” said Kenichi Kuga, head of the global equity and fixed income investment department at Japan Post Insurance. Once elections for the U.S. presidency and Japan’s powerful Lower House of parliament are out of the way, overseas investors will be more likely to buy Japanese stocks that have lagged the broader market, he said in an interview.
The Bank of Japan’s historic shift this year from radical monetary easing to two interest-rate hikes has sparked volatility in the nation’s securities market as investors speculate on the BOJ’s next move. The yen has also swung sharply as traders wager on Federal Reserve rate cuts, though economists say Japanese companies have become less vulnerable to exchange-rate moves by basing more operations overseas. The corporate sector is facing pressure from policymakers, as well, to take steps that boost their shareholder value.
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