Institutions: Japan's GDPRise may prove the rationality of optimistic views on the stock market

On February 11th, Jin10 Data reported that Vis Nayar and Ray Farris, analysts at Eastspring Investments, said that the nominal GDP growth rate in Japan in the fourth quarter may be lower than the market’s general expectation of 1.1%. However, the expected rise in the economy in the first half of the year supports their constructive view of the Japanese stock market. The trend of the Japanese stock market often coincides with nominal GDP. Chief Investment Officer Nayar and Chief Economist Farris said that unexpected inflation in December and most indicators show that inflation will continue at least in the first half of the year. In addition, it is crucial that wages rose in the fourth quarter, and in the upcoming Tokyo salary negotiations, wage increases are expected to further rise. If negotiations bring faster wage rises, actual income should rise and support the recovery of actual consumption. They added that given the persistent inflation, nominal GDP growth should remain close to 1%.