Japanese equities are primed to close the gap with global peers in 2022, analysts and strategists say, with the country¡¯s cheap valuations, low inflation and high vaccination rates set to make up for a disappointing 2021.
Goldman Sachs Group Inc. and Morgan Stanley have 12-month targets of 2,250 for the benchmark Topix index, implying a gain of 12% from Thursday¡¯s close, while UBS SuMi Trust Wealth Management sees it hitting that level by June. In a boon for the country¡¯s many exporters, the yen is seen worsening its drop against the dollar after the Federal Reserve¡¯s abrupt policy pivot this week.
The bullish predictions come after Japan fell behind its developed peers this year, with lengthy COVID-19 states of emergency sapping spending and growth.
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