Investment expert: Japanese stocks may continue to perform well.

Daniel Hurley of Purves Investment Management stated in a report that even if the Japanese yen weakens moderately, Japanese stocks may continue to outperform their peers. Hurley said that a gradual weakening of the yen could support exporters and multinational companies' profits, potentially boosting the overall stock market. However, with Japan also dealing with input-driven inflation and rising input costs, uncontrolled currency depreciation could become a resistance, leading to concerns about policy tightening, household purchasing power, and financial stability. The portfolio expert stated, "For Japanese stocks, the healthiest and best outcome would be for the Japanese central bank to normalize its monetary policy, leading to a gradual appreciation of the yen." He added that the biggest short-term risk would be political pressure on the central bank or external forces leading to an unexpected appreciation of the yen.