Deutsche sees Topix at 1,000 in a year

TOKYO (Reuters) - The Tokyo stock market's broad-based Topix index could reach 1,000 in about a year, up nearly 10 percent from the current level, with corporate earnings poised to gradually regain ground, a leading Japanese equity strategist said on Monday.

"The market could have a correction around this autumn as it now sits on the top part of the range, but it will likely start picking up again in the middle of next year," Naoki Kamiyama, chief equity strategist at Deutsche Securities, said in an interview ahead of the Reuters Japan Investment Summit.

"We believe the global economy will recover without a doubt in the mid- to long-term."

The Topix has gained some 30 percent from its lows hit in March, as massive stimulus measures taken by governments around the world have fueled hopes for a relatively speedy recovery in the economy and buoyed global stock markets.

The Reuters summit, which brings together top executives to discuss the changing investment environment in the world's second-largest economy, officially kicks off on Tuesday.

Among sectors, Kamiyama said he favored mid-tier drugmakers and regional banks in the next two or three months for their clear short-term profit outlooks and because they are likely to have taken fewer business risks than bigger rivals.

But sectors such as financials, exporters and materials and energy firms will then likely become leading stocks as the global economy recovers.

"The global financial market has been normalizing and is in the last stage of the recovery, and that allows us to be hopeful about a recovery in financials," Kamiyama said.

"A full-fledged recovery in the global economy will also benefit exporters such as automakers and industrial electronics makers."

(Editing by Hugh Lawson)