Japan's Nikkei 225 share index is set to push through 20,000 points thanks to ultra-easy monetary policy rekindling confidence in the world's third largest economy, a raft of equity experts told CNBC on Wednesday.
"We are long the Japanese equity market and I feel very comfortable with that position," Bob Parker, the senior investment, strategy and research advisor at Credit Suisse, told CNBC.
Parker believes that the benchmark will outperform its peers adding that a 10 percent rise over the next six months is "not unreasonable." Ian Wright, the director of investment management firm Morant Wright, told CNBC that the 20,000 point level is achievable and said that the Bank of Japan has essentially been given an assignment to "buy the market" to ward off the weak inflation that has plagued the country for decades.
Named after Japan's Prime Minister Shinzo Abe, the strategy of "Abenomics" cranked up a level this week following disappointing growth data on Monday. Abe has called for snap elections to try to gain a larger mandate to push through yet more stimulatory measures. This comes after surprise easing from the Bank of Japan (BOJ) at the end of October which fueled yet more gains for the Nikkei.
On Tuesday, the Nikkei 225 posted its biggest gain in two weeks following Abe's announcement of an early election poll, as well as a delay in next year's sales tax increase, which is seen as likely to bring more measures to stimulate growth. This came a day after new data showed that the economy contracted an annualized 1.6 percent in the July-September quarter.
The Nikkei has gained 6.5 percent this year which pales into insignificance when compared with the increase of 57 percent seen last year when the country's central bank aggressively expanded its balance sheet and helped stocks higher and its currency lower. The index now stands at 17,288 points but is still way off a record high of 38,915 points in 1989 when the country was enjoying its economic zenith.