Nikkei 225 hit 15 year high at 20000 yen

Sumitomo Mitsui Asset Management
Japan Market Memo
For information only
(No.019)
Today’s
13 April 2015
Topic
Nikkei 225 hit 15 year high at 20,000 yen
Point
1
Global monetary easing and corporate earnings boosted the stocks
Acceleration of buying by foreign investors
■Nikkei 225 opened higher to 20,006 yen,
hitting 15 year high at 20,000 yen since April
17th, 2000. The index closed slightly
lower -30.09 at 19,907.63 yen after
the psychological milestone of 20,000 yen
induced profit-taking.
■Although Nikkei 225 declined temporally to
below 19,000 yen on April 1, it has been
climbing on the back of global monetary
easing and upbeat corporate earnings
forecast.
■By investor category, foreign investors are
aggressively buying the shares again lately.
This investor category has accelerated buying
to JPY44.54billion in the first week of April
from JPY53.06billion in March after turning to
a net buyer of JPY20.15billion in February
from a net seller of JPY89.32billion In January.
Point
2
"Nikkei 225 and Net-purchase Value of Foreign Invesotrs"
（JPY）
（JPY Trillion）
100
25,000
Nikkei 225
（Right Axis）
80
20,000
60
15,000
40
10,000
Net-purshase Value of
Foreign Investors
20
5,000
（Cumulative bases / Left Axis）
0
99/1
0
01/1
03/1
05/1
07/1
09/1
11/1
13/1
15/1
（Year / Month)
（Note）
Data period: Nikkei 225 from Jan. 29, 1999 to Apr.10, 2015.
Net-purchase value of foreign investors from Jan. 29, 1999
to Apr.3, 2015. (weekly data on cumulative bases)
（Source） SMAM, based on Bloomberg L.P. data.
Toward medium to long term solid rally
20% corporate earnings profit growth forecast in FY2015
■One of the reasons for supporting the equity
market is that companies are more focusing
on the shareholders’ interest. The medium to
long term return on equity (ROE) growth is
increasingly expected as companies are
reinforcing the shareholder return through
share buyback and taking into account of
corporate governance such as raising
the number of unaffiliated directors.
■In addition, the corporate earnings are likely
to continue growing to all-time high as
the consensus forecast for FY2015 by
Bloomberg has been revised upward to + 19%
y-o-y from + 5% y-o-y about a few months
ago.
（JPY）
Corporate Earnings & P/E Ratio
1,800
90
1,600
1,400
1,200
（Times）
Earnings per share（Left Axis）
80
（Forecast）
70
P/E Ratio（Right Axis）
60
1,000
50
800
40
600
30
400
20
200
10
0
0
-200
-10
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17
（Year）
（Note） Data is from 2000 to 2017. Consensus forecast by Bloomberg after
■当資料は、情報提供を目的として、三井住友アセットマネジメントが作成したものです。特定の投資信託、生命保険、株式、債券等の売買を推奨･勧誘す
FY2015. No P/E is shown for FY2009 as the figure is negative.
るものではありません。■当資料に基づいて取られた投資行動の結果については、当社は責任を負いません。■当資料の内容は作成基準日現在のもので
Both Earnings per share and P/E are based on Nikkei 225 index.
あり、将来予告なく変更されることがあります。■当資料に市場環境等についてのデータ・分析等が含まれる場合、それらは過去の実績及び将来の予想で
（Source） SMAM, based on Bloomberg L.P. data.
あり、今後の市場環境等を保証するものではありません。■当資料は当社が信頼性が高いと判断した情報等に基づき作成しておりますが、その正確性・完
全性を保証するものではありません。■当資料にインデックス･統計資料等が記載される場合、それらの知的所有権その他の一切の権利は、その発行者お
よび許諾者に帰属します。■当資料に掲載されている写真がある場合、写真はイメージであり、本文とは関係ない場合があります。
Sumitomo Mitsui Asset Management
Japan Market Memo
(No.004)
Future Outlook
For information only
25 September, 2014
Solid market is expected underpinned by upbeat corporate earnings
 When Nikkei 225 was traded above 19,000 yen in Year 2000, the P/E of the stocks was extremely high of
about 70x during the period of so-called “IT Bubble” in Japan. In contrast, the current P/E is still 19x and
the market does not seem to be an excessively overbought.
 Although the market may consolidate for a short while as it has sharply risen since the beginning of this year,
the Japan's market is expected to advance further along with expanding corporate profits renewing their
historical high.
Disclaimer
Please read this disclaimer carefully.
= This material is for non-Japanese institutional investors only.
= The research and analysis included in this report, and those opinions or judgments as outcomes thereof, are
intended to introduce or demonstrate capabilities and expertise of Sumitomo Mitsui Asset Management Company,
Ltd. (hereinafter “SMAM”), or to provide information on investment strategies and opportunities. Therefore this
material is not intended to offer or solicit investments, provide investment advice or service, or to be considered as
disclosure documents under the Financial Instruments and Exchange Law of Japan.
= The expected returns or risks in this report are calculated based upon historical data and/or estimated upon the
economic outlook at present, and should be construed no warrant of future returns and risks.
= Past performance is not necessarily indicative of future results.
= The simulated data or returns in this report besides the fund historical returns do not include/reflect any investment
management fees, transaction costs, or re-balancing costs, etc.
= The investment products or strategies do not guarantee future results nor guarantee the principal of investments.
The investments may suffer losses and the results of investments, including such losses, belong to the client.
= The recipient of this report must make its own independent decisions regarding investments.
= The opinions, outlooks and estimates in this report do not guarantee future trends or results. They constitute
SMAM’s judgment as of the date of this material and are subject to change without notice.
= The awards included in this report are based on past achievements and do not guarantee future results.
= The intellectual property and all rights of the benchmarks/indices belong to the publisher and the authorized
entities/individuals.
= This material has been prepared by obtaining data from sources which are believed to be reliable but SMAM can not
and does not guarantee its completeness or accuracy.
= All rights, titles and interests in this material and any content contained herein are the exclusive properties of SMAM,
except as otherwise stated. It is strictly prohibited from using this material for investments, reproducing/copying
this material without SMAM’s authorization, or from disclosing this material to a third party.
Registered Number: Kanto Local Finance Bureau (KINSHO) No.399
Member of Japan Investment Advisers Association, The Investment Trusts Association, Japan and
Type Ⅱ Financial Instruments Firms Association
© Sumitomo Mitsui Asset Management Company, Limited
■当資料は、情報提供を目的として、三井住友アセットマネジメントが作成したものです。特定の投資信託、生命保険、株式、債券等の売買を推奨･勧誘す
るものではありません。■当資料に基づいて取られた投資行動の結果については、当社は責任を負いません。■当資料の内容は作成基準日現在のもので
あり、将来予告なく変更されることがあります。■当資料に市場環境等についてのデータ・分析等が含まれる場合、それらは過去の実績及び将来の予想で
あり、今後の市場環境等を保証するものではありません。■当資料は当社が信頼性が高いと判断した情報等に基づき作成しておりますが、その正確性・完
全性を保証するものではありません。■当資料にインデックス･統計資料等が記載される場合、それらの知的所有権その他の一切の権利は、その発行者お
よび許諾者に帰属します。■当資料に掲載されている写真がある場合、写真はイメージであり、本文とは関係ない場合があります。

Download Report