TOKYO, Nov 29 Reuters Japan39;s Nikkei 225 share average will rally to the psychological 30,000 level by the middle of next year for the first time since September 2021, according to analysts in a Reuters poll.

Investors see inflation peaking in the United States and elsewhere, which could cause governments to loosen monetary policy. Lower interest rates or higher economic growth would improve the outlook for Japanese corporate profits.

However, risks to the outlook include the extent of the global economic slowdown and China39;s renewed COVID clampdowns, which are resulting in social unrest.

The median estimate of 11 analysts polled Nov. 1428 was for the Nikkei to be at 30,000 at endJune, although that represents a mediumterm plateau, with the poll putting it at that level at the end of next year as well.

That would be a 6 advance from Friday39;s close of 28,283.03. The Nikkei39;s high for this year was in January, when it touched 29,388.16.

Japan39;s stock benchmark has retreated after hitting a 10week high of 28,502.29 on Thursday amid growing optimism U.S. inflation may be peaking and the Fed would shift to a more dovish stance as soon as next month.

TD Asset Management gives a representative view, with forecasts for the Nikkei to reach 30,500 in June before rising to 30,700 in December, and then 31,000 by mid2024.

We are heading toward the demise of the restrictive financial environment that resulted from the Fed39;s hawkish turn, although the market…