BlackRock’s comments on the Bank of Japan are in the context of the firm holding a ‘high conviction’ view on higher Japanese stocks:
Japan’s economic revival — and the return of inflation — “makes its equity market one of our strongest convictions,” the BlackRock Investment Institute said in its mid-year outlook.
The firm expect the BoJ not to hike rates next week:
BOJ probably needs to wait until price trends are confirmed near the end of 2024 before hiking“We expect an accommodative environment to continue in Japan,” stocks have more room to rise because the BOJ is likely to take a cautious approach to normalizing policy amid an extension of subsidies for power and gas bills for several more monthsThis puts the benchmark Topix index on course to set fresh record highs this year
Info comes via Bloomberg (gated)
This article was written by Eamonn Sheridan at www.forexlive.com.
