Stock market today: S&P 500 extends monthly win streak despite Nvidia-led stumble
Investing.com - Capital Economics expressed a positive outlook for Japan’s stock market and exchange rate while cautioning about the country’s bond market prospects.
The economic research firm believes the Bank of Japan will be unable to ignore high inflation for long and will ultimately implement more interest rate hikes than market consensus currently anticipates, according to its recent Japan Weekly report.
In China, this week’s Central Urban Work Conference failed to deliver the major redevelopment initiatives some investors had anticipated. Capital Economics noted that Chinese policymakers appear cautious about worsening the country’s housing market oversupply, suggesting limited economic stimulus will result from the conference’s announcements.
The research firm also reported that fiscal risk measures have recently eased in Central and Eastern Europe, though clear concerns remain. Capital Economics projects that debt-to-GDP ratios across the region will generally increase more than widely expected over the coming years.
Capital Economics maintains its positive stance on Japanese equities despite its cautious bond market outlook, indicating potential opportunities for investors in Japan’s stock market even as interest rate expectations shift.
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