Skip to main content

Japanese Stocks Will Head Higher as Inflation Rises and Yen Falls

'Abenomics' is working and inflation will spur the Japanese to invest for greater yield, offering bullish prospects for the Nikkei, said John Koudounis, CEO or Mizuho Securities USA.

'Abenomics' is working and inflation will spur the Japanese to invest for greater yield, offering bullish prospects for the Nikkei, said John Koudounis, CEO or Mizuho Securities USA. Koudounis added that since Prime Minister Shinzo Abe was reelected stocks have doubled, the job market has tightened and wages are rising the most in 15 years. He said inflation in Japan has increased 2.2% this year, for the first time in 20 years. Furthermore, Koudounis said the Japanese have $1.6 trillion in savings and if just 1% of these funds moves to equities, it will add 6% to the Nikkei. Finally, he said Corporate Japan is looking abroad for M&A and foreign investors are helping to lift the Japanese economy.