Nikkei ‘to rise 40% in 2013′

<p>The Nikkei will be up by 40 per cent during 2013.</p>

The Nikkei has reached a new five-year high this week and analysts believe the strong performance in recent weeks is going to continue for the rest of the year.

Specialists expect the Nikkei to be up 40 per cent by the end of 2013 and the index has already grown 30 per cent in the last three months.

Kyoya Okazawa, head of global equities and commodity derivatives at BNP Paribas in Tokyo, told Reuters that the Bank of Japan's (BoJ's) monetary policy has had a major impact on investors.

He explained the changes announced by the BoJ has changed where the Japanese market is heading in the future, so "we should reset our targets in order to maintain our bullish stance on the Japanese stocks".

However, the analysts are now predicting that the yen is going to drop 18 per cent against the dollar by the end of the year, indicating not everything will go well for the Japanese economy in 2013.

At the midday break, the Nikkei was up by 0.8 per cent to stand at 13,398.41 and had reached as high as 13,496.28, the index's highest since July 2008, during the morning session.

Learn about the Asian markets and CFD trading at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.