Japan's Nikkei can exceed 28,000 points in 2019 due to the yen


Directly– JPMorgan said the risk of an unexpected yen falling next year could not be controlled, saying it could lead to an increase in Japanese equities.

Japan's Nikkei index can reach 28,000 points, 25 percent higher than the current level, as the Japanese currency reaches 125 yen per dollar, the Bank of Japan said on Thursday.

Japan's Nikkei ended the day down 1.1% at 22,250.3 points.

He added that although this expectation was not large, such a scenario was not impossible.

In the case of a substantial yen decline, the outlook for the stock market in the world's third-largest economy is likely to change, a US bank report said.

The US bank believes that the worsening trade balance, high oil prices and further widening of the difference between Japanese and US interest rates can contribute to pressure on the yen.

The report predicts that if Japan records a trade deficit in 2019 and the 10-year gap between 10-year Treasury bonds widens by 30 basis points, the dollar will rise against the yen at 2015 highs around 125 yen per dollar.

At 10:05 GMT, the yen rose 0.2 percent at 113,880 yen.

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