Merrill Sees Foreigner Buyers Extending Nikkei 225 Rally
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The Nikkei 225 Stock Average, heading for a 12-week winning streak, will rise a further 12 percent by June as foreign investors add to their Japanese holdings, according to Bank of America Merrill Lynch.
Overseas investors were net buyers of the shares for 11 weeks to Jan. 25, according to Japan Exchange Group Inc. That’s pushed stocks to a 2 1/2-year high as a slide in the yen improves the profit outlook for exporters. The rally will pause before accelerating again in May when the benefit of a weaker currency shows itself in corporate earnings reports, according to Naoki Kamiyama, the brokerage’s chief Japan equity strategist.