According to Jinshi, Ryota Sakagami, chief strategist of global markets at Citigroup, pointed out in a report that the Nikkei 225 index has lost momentum and may remain weak in the short term due to several factors. First, major Japanese companies may give conservative forward guidance on their performance. Second, if the Bank of Japan raises its inflation expectations in its upcoming outlook report, the yen may strengthen, triggering speculation about an early rate hike. Finally, short-term stock investors may tend to turn from Japan to China.
