Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Bank of America (BofA) has upgraded its year-end forecasts for Japan’s major stock indexes, fueled by optimism over economic expansion and policy continuity under new Liberal Democratic Party (LDP) President Sanae Takaichi. The bank now expects the Nikkei 225 to reach 49,000 points (up from 45,000) and the TOPIX to hit 3,300 points (up from 3,200). Analysts noted that sustained market momentum could push the benchmarks even higher—to 50,000 and 3,370 points, respectively.
BofA’s analysts said the political transition represents a shift toward growth-oriented and reflationary policies, contrasting with former Prime Minister Shigeru Ishiba’s focus on fiscal restraint. Takaichi’s administration is expected to emphasize fiscal expansion, tax incentives, and nominal growth, supporting a more bullish market outlook.
Despite strong rallies, BofA believes Japan’s stock valuations remain supported by earnings potential. The price-to-earnings (P/E) ratio for the TOPIX stands near 15.7 times, within its historical range, with 12-month forward earnings per share projected to rise on 13.5% profit growth next fiscal year.
The investment bank warned that markets could experience short-term corrections after recent gains but maintained a positive medium-term view. Key drivers include unexecuted share buybacks worth about 6.5 trillion yen, a potential supplementary budget, and pro-growth fiscal measures. These factors, according to BofA, could stabilize markets and sustain investor confidence.
Sector-wise, BofA favors industries aligned with Takaichi’s policy priorities such as defense, cybersecurity, nuclear energy, construction, and real estate. It also maintains a selective overweight stance on AI hardware, nonferrous metals, and industrial electronics.
Risks highlighted include rapid yen depreciation, possible Bank of Japan rate hikes, coalition negotiations with Komeito, and U.S. inflation shocks.
Japanese equities surged to record highs this week following Takaichi’s leadership victory, which positions her to become Japan’s first female Prime Minister ahead of the mid-October parliamentary session.
