Investing.com– Japanese stocks have traded largely rangebound so far in 2024 after logging strong gains in the past year, with BofA analysts noting that a slew of negative factors for local markets may already be priced in.
The index was trading flat so far in 2025 after adding nearly 20% in the past year, with BofA analysts noting that the index reacted positively to U.S. President Donald Trump’s inauguration, especially given that he did not impose trade tariffs as feared.
“We believe this represents a first step toward the market pricing in an end to bad news following the negative effect on financial conditions from the jump in US long-term yields since late-December 2024,” BofA analysts said in a note.
Still, markets remained uncertain over the near-term outlook for tariffs, given that Trump did threaten 10% tariffs against China and 25% tariffs on Canada and Mexico. But BofA expects clarity on tariffs to drive more…
