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TOKYO, April 28 (Reuters) - A scorching rally in Japanese shares that appeared to have run ahead of economic prospects has stalled, but analysts are betting it will resume as early as mid-year as the country’s heavily cyclical stocks thrive on global growth.
A world-beating 33% rally in the Nikkei 225 from the end of October has faltered around the 30,000 mark since mid-February, even as other major stock indexes reached for new highs almost every week, led by U.S. equities.
Faith in the recovery from the COVID-19 pandemic that had made the Nikkei the darling of investment bets on global reflation has faltered. Japanese investors have turned cautious about pushing the index back to levels not seen since the bubble economy burst in the early 1990s.