Allianz Says Japan Stocks Will Defy Geopolitics, Yen Volatility
- Yen will likely weaken to 155-158 per dollar, Nakatsuka says
- Japanese small-caps will catch up to bigger peers, he says
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Middle East tensions and currency volatility have caused Japan’s record stock rally to falter, but the weakness looks temporary as solid corporate fundamentals and the long-term artificial intelligence outlook provide support.
That’s the view of Koji Nakatsuka, chief investment officer for Japan equity at Allianz Global Investors, which manages $2.4 trillion in assets globally. “If everything gets normalized, the Japanese stock market has an upside potential towards the end of the year. The Nikkei may return to its record high levels by year-end,” he said.