Halister News

(Bloomberg) -- Expect BoJ rate to cut rates deeper into negative territory (to -0.3% from -0.1%) in July or thereafter, Citi analyst Naoki Lizuka writes in a note.

• Recommends “bond refugees” for which one can expect fund

inflows accompanying lower interest rates, cash-rich cos and fiscal policy beneficiaries

• Likes Takeda, Daiichi Sankyo, Japan Airline, NTT Docomo among bond refugees
• Prefers Sony, Nintendo, Fanuc on high cash
• Fiscal policy beneficiaries include NS Solutions, IT Holdings, Nomura Research
• BoJ may also combine additional easing and QQE in April
• Possibility of more stimulus, postponement of the consumption tax hike also increases
• NOTE: Calm Restored in Japan Stocks as Fear Gauge Hits 2016 Low: Chart
• NOTE: Strategists’ 2016 Forecasts for Japan’s Topix Index (Table)