Can Japan's Nikkei benchmark hit an all-time high of 40,000? One strategist thinks so

Japan's Nikkei 225 tin scope 40,000 points successful the adjacent 12 months arsenic fundamentals are "pointing successful the close direction," according to marketplace strategist Jesper Koll.

His optimism successful Japan besides comes from a beardown rebound successful concern assurance and a supportive fiscal policy.

Should the prediction travel true, this would mean that the Nikkei would person breached its all-time precocious of 38,195 achieved connected Dec 29, 1989.

At the time, Japan was successful the mediate of a existent property bubble. When the spot marketplace collapsed, equity and onshore prices besides crashed, triggering a play of debased economical maturation successful Japan that continues today.

Koll, an adept manager astatine fiscal services steadfast Monex Group, told CNBC's "Squawk Box Asia" that successful summation to capitalist interest, "Japanese CEOs are present utilizing their retained net for the archetypal clip successful 30 years to really put successful people, to put successful the business."

"I spot nary crushed for wherefore we shouldn't beryllium mounting [a] people supra 40,000 implicit the adjacent 12 months," helium said connected Monday.

Japan's cardinal slope has maintained an ultra-loose monetary argumentation for much than 20 years.

Asked if his forecasts instrumentality into relationship the anticipation that the Bank of Japan could tighten its monetary policy, Koll said that if determination is nary propulsion origin for the BOJ to determination connected involvement rates, "why should I alteration monetary argumentation conscionable for the involvement of changing monetary policy? It makes perfectly nary sense."

He thinks that BOJ politician Kazuo Ueda is having a "watchful waiting" stance successful presumption of the economical information coming retired of Japan.

The main happening to ticker is adjacent year's outpouring wage negotiations, helium said, adding it volition archer if "the deflation spell is broken, and that Japanese CEOs are consenting to put successful radical and superior expenditure."

Only past volition the BOJ normalize involvement rates, helium said, but "this would not beryllium for astatine slightest six to 9 months."

However, IG expert Tony Sycamore holds a somewhat antithetic presumption from Koll.

He said that portion determination is much upside successful the Nikkei, "a batch of bully quality is already priced in."

With the Nikkei already seeing a 27% summation year-to-date, helium expects the rally to falter somewhat betwixt the 36,000 people and the all-time precocious of 38,195, earlier settling successful 12 months' clip astatine astir 33,000. That's connected the anticipation that the BOJ volition determination to tighten monetary policy.

To Sycamore, past could besides connection immoderate insights.

"Keep successful caput the past happening the BOJ wants to make is different plus bubble successful Japan aft spending 3 decades recovering from the past one," helium told CNBC.

However, Koll is of the presumption that to marque the lawsuit that Japanese assets are overvalued is "extremely hard to do."

He pointed retired that the Japanese marketplace is trading astatine a 14 times price-to-earnings ratio, but fractional the companies connected the marketplace are trading beneath publication value.

While existent property prices are astatine the levels not seen since the bubble, they are inactive affordable aft taking successful existent owe rates and wages, Koll said.

"So from that perspective, is determination an plus bubble present that is causing societal disruption that is causing discomfort wrong the Japanese economy, wrong Japanese society? The reply is perfectly no."