* STOXX 600 up 0.5%
* Stimulus hopes bolster sentiment
* Wall Street shut for holiday
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MORE ROOM TO RISE FOR JAPAN’S EQUITIES (0843 GMT)
Japan equities have been in the spotlight after Prime
Minister Yoshihide Suga offered to resign, raising hopes of
avoiding political turmoil.
The big unknown is whether they have more room to grow. UBS
analysts have a positive straight answer to this question and
see Japanese equities “as most preferred” in global portfolios.
Here are the reasons to continue buying Japan’s stocks,
according to UBS.
More fiscal stimulus could be on its way as Suga resigned.
UBS estimates 70% of the population to be fully vaccinated by
November from 40% now. One of Japan’s leading car sector
suppliers, Malaysia, reported that half of its population is
fully vaccinated.
“We recently revised up our fiscal year 2021 and 2022
corporate earnings growth forecasts for Japan to 42% and 8%,
respectively,” they…
