Tokyo stocks are expected to test an all-time high in 2024 on hopes of robust corporate results and real wage growth, overcoming a stronger yen that will pressure exporters amid prospects of policy changes by the Japanese and U.S. central banks.
Also lifted by investor-friendly moves by companies, the benchmark 225-issue Nikkei average is likely to rise to between 36,000 and 40,000, experts said, with its upside possibly clearing the 38,916 peak marked in late 1989 during the asset price bubble.
After declining in 2022, the Nikkei advanced around 28%, its fastest pace in a decade, to end 2023 at 33,464.17, its highest finish since 1989. The increase was helped by the boost provided from export-oriented firms which saw higher profits due to the yen's depreciation against the U.S. dollar.