Hedge fund manager J. Kyle Bass and JPMorgan Chase & Co.’s Jesper Koll, who hold opposing views on Abenomics, both agree a selloff in Japanese government bonds is not over.
Japan’s new Prime Minister Naoto Kan will introduce policies likely to spur economic growth and earnings, boosting stock prices, strategists at JPMorgan Chase & Co. and Deutsche Bank AG said.
Naoto Kan took less than 24 hours to deliver the “decisive action” he pledged during a fight to remain Japan’s prime minister, selling the yen to stem criticism his response to a slowing economic recovery was inadequate.
Japan’s shrinking economy is poised to get a lift from the children of baby boomers taking out their first mortgages with rates close to a three-year low.
Goldman Sachs Group Inc., Bank of America Corp. and Nomura Holdings Inc. are predicting Japanese stocks will extend their longest streak of gains in 23 years as extra economic stimulus boost earnings.
"The next move is fiscal policy, with the delay in the VAT hike next year now a virtual certainty."
- Jesper Koll on Nov 16, 2014