Nikkei May Be the World’s “Best Performer” in 2011, Daiwa Says
Kazuhiro Miyake, chief strategist at Daiwa Securities Capital Markets Co. in Tokyo, comments on the outlook for the Nikkei 225 (NKY) Stock Average. The Nikkei rose 0.6 percent to close at 10,589.50 today in Tokyo.
“Investors are rediscovering Japan. Even with the yen appreciating very sharply, you’re seeing earnings increase by a large margin. If the U.S. economy improves enough to allow for the end of quantitative easing and you have the dollar strengthening against the yen, there’s a good chance that earnings will improve even further.
“There’s a real chance that Japanese stocks will be the world’s best performer.
“If the yen weakens against the dollar you could see the Nikkei reach the 13,000 level in December.”
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