Nikkei verges correction before yields in 2021: Reuters poll

Japanese shares will most likely undergo correction in the near term as a global rally surges in the midst of sparking hopes for vaccines. But the best is yet to come for Nikkei as it is expected to yield its highest gains in 30 years, according to a Reuters poll on Wednesday.

In the survey conducted on Nov. 12-23, the median estimate in the poll of 26 analysts and fund managers said the benchmark index Nikkei will hit 26, 000 at the end of 2020.

The forecast was slightly below Nikkei’s close on Tuesday of 26,165.59. However, it was almost 12% higher than the previous poll in August, where it placed the index at 23,300 by the end of the year.

The median forecast in the survey sees the Japanese shares to maintain the 26,000 level by June next year before skyrocketing to 27,350 at the end of 2021, which, if ever, would be Nikkei’s highest level since August 1990.

 Nikkei showed flashes of promise as it hit its highest close since May 1991 on Tuesday, joining a global equity rally sparked by a series of glimmering hopes on coronavirus vaccines.