JPMorgan Cuts Japan Stock Targets on Stronger Yen, Recession Fears

JPMorgan Chase & Co. has lowered its year-end projections for Japan`s stock market indices, the Topix and the Nikkei 225, due to the strengthening yen and concerns about a potential US recession. This revision follows a similar move by UBS Group AG. JPMorgan`s strategists now anticipate the Topix to reach 2,700-2,800 and the Nikkei 225 to hit 39,000-40,000 by year-end, down from their previous estimates. The firm also reduced its earnings per share growth forecast for Japanese stocks. Both JPMorgan and UBS suggest focusing on stocks related to domestic demand. This adjustment comes after recent volatility in the Japanese equity market triggered by the Bank of Japan`s interest rate hike and its governor`s comments on future policy.