Japanese stocks are expected to notch a near 9 percent gain this calendar year on solid corporate earnings growth, a relatively weaker currency, as well as lingering optimism about the U.S. economy, a Reuters poll found.The Nikkei share average is forecast to trade at 20,750 at the end of the year, up 3 percent from Wednesday's close of 20,130.41, according to the median of 20 analysts and fund managers polled by Reuters in the past week.It is then forecast to reach 21,500 by end-June 2018.Three months ago, the consensus among forecasters polled by Reuters had the Nikkei at 19,000 around now, which was too pessimistic. Only three of 21 forecasters surveyed in March thought it would be higher than where it is now. "The strong U.S. economy, weak yen and solid Japanese corporate earnings will likely lift Japanese stocks higher," said Hiroyuki Fukunaga, chief executive of Investrust.Forecasts for end-2017 ranged from 18,500 to 23,000. They were 20,000 to 24,000 for mid-2018, and 19,000-25,000 for end-December 2018.After closing out 2016 just above 19,114 the benchmark index struggled earlier this year on geopolitical concerns, with a stronger yen capping gains.There were also worries of political turmoil in the U.S. as President Donald Trump's firing of former FBI director James Comey heightened risk aversion as investors fretted that Trump's economic agenda could get derailed.But the French presidential election in late April triggered a turnaround in global investor confidence.

Source: Economic Times June 29, 2017 04:52 UTC