The Nikkei is forecast to rise to 39,600 by the end of 2025, down from a February forecast of 42,500. This info via a Reuters poll.
Analysts expect U.S. trade policy uncertainty, especially Trump’s tariff threats, to ease in the coming months, allowing markets to refocus on fundamentals like a weak yen and strong earnings.
Some strategists predict the Nikkei will hit new record highs by mid-to-late 2026, while others remain cautious, citing lingering trade and economic concerns.
Recent swings in Japanese stocks, driven by Wall Street and tariff shocks, are expected to continue, with analysts divided on the likelihood of another correction.
Analysts are split on whether earnings in 2025 will surpass those of 2024, with trade clarity seen as key to more confident projections.
