Citigroup: Target for the Nikkei 225 index by the end of this year is 45,000 points, with expectations that the automotive sector's upward trend will continue.

Citibank analysts expect the Nikkei 225 index to reach 45,000 points by the end of this year. Three major factors increase the possibility of a favorable long-term outlook for the Japanese stock market, including: the negative impact of tariffs on profits is expected to be lower than previously thought; prospects for valuation are strengthened as uncertainties are eliminated; and an acceleration of foreign capital inflows is possible. In terms of industry, analysts believe that despite the significant increase in the Japanese automotive sector since July 23, the upward trend is expected to continue. Citibank's head of investment strategy and asset allocation, Liao Jiahao, added that the trade agreement reached between the US and Japan is a very positive development for the Japanese stock market, and can be viewed from three major aspects: firstly, the final confirmation of tariff rates on Japanese imports makes the impact of tariffs on profits clearer; secondly, tariffs on automobiles, one of Japan's major industries, have been significantly reduced, which should alleviate the impact on industry profits; and finally, the rapid completion of tariff negotiations between the US and Japan.