TechFlow news, on February 11, according to Jinshi Data, Eastspring Investments analysts Vis Nayar and Ray Farris said that although Japan's nominal GDP growth in the fourth quarter may be lower than the market expectation of 1.1% quarter-on-quarter, rising economic growth expectations for the first half of the year support their constructive view on Japanese equities.
The analysts noted that inflation rose unexpectedly in December, and most indicators suggest reflation will last at least through the first half of the year. Notably, wage growth increased in the fourth quarter and is expected to rise further during the upcoming Tokyo wage negotiations. They believe that faster wage growth from these talks would boost real income and support a recovery in real consumption growth. Given persistent inflation, nominal GDP growth is expected to remain around 1%.
