Analysts: Interest rate hike speculation has not hindered the rise of Japanese stocks The market expects that the tightening will not be strong enough to constitute a serious resistance

Sina Financial News Just as investors were preparing for the Bank of Japan’s tightening policy, the Topix index rose sharply on Monday, even outpacing the bank sub-index. Analyst Garfield Reynolds previously noted that the reason why investors are so confident is partly due to expectations about the outlook for the yen, and almost no one expects the yen to appreciate quickly. In addition, the market expects that the rate hike will not be fast enough to pose a serious headwind for the stock market. In the latest survey, the majority of respondents expect short-term interest rates in Japan to remain below 0.5% this year. This is unlikely to scare off equity investors, especially with the TOPIX dividend yield expected to be 2.3 this year, and corporate margins are expected to rise this year and continue to rise in 2025. At the same time, Japanese bonds will continue to have negative real yields for some time, which will also boost the outlook for local equities. All in all, the Japanese stock market can cope with the gradual progress of the Bank of Japan’s policy adjustment.