Nikkei at interesting crossroads – BBH

FXStreet (Guatemala) – Analysts at Brown Brothers Harriman explained that the Japanese stock market is at interesting crossroads.

Key Quotes:

“We note that the Nikkei had fallen through an 8-month uptrend that began shortly before the BOJ surprised the market at the end of last October by aggressively expanding its QE operations.”

“We suggested that this could prove to be a false break. The Nikkei rallied 1.25% today. It closed back above the uptrend (~20290) and above the 20-day moving average (~20370). Recall the BOJ is buying stocks as part of its QE operations.”

“Pension funds continue to diversify away from JGBs and into stocks (and foreign assets). As part of Abe’s third arrow, the new emphasis on shareholder value facilities stock buyback schemes.”

Analysts at Brown Brothers Harriman explained that the Japanese stock market is at interesting crossroads.

(Market News Provided by FXstreet)