Leaders of major Japanese securities firms have expressed expectations that stock prices will continue to rise, citing strong corporate earnings as a key tailwind.
Executives from the securities industry gathered in Tokyo on Monday for a New Year event. Many said they expect further gains this year, following record highs in the Japanese stock market last year.
Nomura Holdings President and Group CEO Okuda Kentaro said Tokyo’s benchmark stock index, the Nikkei 225, could rise to around 59,000 this year.
He cited strong corporate earnings and the Japanese market’s relative safety from a geopolitical perspective as reasons overseas investors are focusing on the market.
Okuda also said Japan’s economy remains very robust and expressed confidence that the market will remain steady.
Daiwa Securities Group President and CEO Ogino Akihiko projected the Nikkei 225 could reach 62,000 this year.
He said Japanese companies are performing well and he expects profits at major firms in the next fiscal year to significantly exceed those of the current fiscal year. He added that such improvements are likely to be reflected in stock prices.
Rakuten Securities Holdings President and CEO Kusunoki Yuji predicts stock prices are likely to remain firm this year.
He pointed to the growth strategy of the administration of Prime Minister Takaichi Sanae, the possibility that companies will continue share buybacks, and the reduction of minimum investment units, which makes it easier for individual investors to participate in the market.