TOKYO: Japanese share prices are expected to rally further in coming months as Covid-19 vaccination programmes and economic relief packages around the world support a solid recovery in corporate earnings, a Reuters poll found.
But many market players think the market could see a hefty correction later in the year as major central banks may start talking about tapering emergency stimulus.
The median estimate in the Feb. 12-23 poll of 24 analysts and fund managers forecast the benchmark Nikkei index will gain around 4.5% to reach 31,000 by end-June, over 13% higher than the previous Reuters poll in November that forecast the index at 27,350.
The Nikkei has risen sharply since November, hitting a more than three decade high of 30,714 last week, on hopes of a large fiscal package in the United States and the start of COVID-19 vaccination programmes in many countries. It closed around 29,672 on Wednesday. The median forecast in the poll saw the Nikkei dipping slightly to 30,750 by end-2021 before rising back to 32,000 next year.
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