Bloomberg News

Deutsche Bank Raises Topix Target 4.5% on BOJ Easing, Weaker Yen

February 21, 2012

Feb. 21 (Bloomberg) -- Deutsche Bank AG raised its 12-month Topix Index target price by 4.5 percent from its previous estimate, citing rising market sentiment after the Bank of Japan announced easing measures last week and the yen weakened.

The investment bank raised estimates for the equity gauge’s price to 930 from 890 and its earnings-per-share to 65.2 from 62 for the year ending March 2013, strategists Naoki Kamiyama and Kensuke Isomura wrote in a report dated today.

Japan’s central bank unexpectedly added 10 trillion yen ($125 billion) to an asset-purchase program on Feb. 14 and set an inflation goal of 1 percent. The Topix has since risen 3.7 percent as the yen weakened to near a seven-month low against the dollar.

The BOJ’s asset buying “should have a fundamental impact, and the setting of a new price stability goal should improve communication with the market,” the report said. “We also look for the temporary weakening of the yen to help improve stock market sentiment.”

--Editor: Jim Powell.

To contact the reporter on this story: Kana Nishizawa in Hong Kong at knishizawa5@bloomberg.net

To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net


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