Stock market specialists are more bullish about the Nikkei Stock Average than they were a month ago, according to a monthly market survey by QUICK Corp. for the month of June.
When asked on June 2-4 where they expect the Nikkei index to be at the end of the month, the simple average of estimates by respondents was 20,432. This tops the one-month forecast of 19,584 in the May survey.
QUICK, a market information group company of Nikkei Inc., surveyed 278 officials in charge of equities at brokerages and institutional investors in Japan, with 179 providing valid answers. When the survey was made, the Nikkei index was moving in the range of 20,397 to 20,619.
Asked what they expect to be the biggest influences on the market in the coming six months, 14% of respondents cited "trends in foreign exchange markets," up from 5% in the previous poll. "The yen has moved weaker than expected, which has activated foreign investors' purchases of Japanese stocks," said an official at a brokerage.
"Foreign investors are showing greater presence, and their trading will likely continue to affect the entire market," said a bank official.