Japanese markets have jumped almost 5% in the first three weeks of the year - almost unheard of for the region - in anticipation of a reversal of the decade and half long slump into deflation.
Economist and renowned commentator on Japan, Arcus Investment's Peter Tasker, said in the last 20 years the country has been through the most severe and prolonged bear market ever seen.
China's economic growth picked up in the fourth quarter of 2012, but data for the year as a whole showed the country recorded its slowest growth for 13 years.
The Japanese government has approved a fresh 10.3 trillion yen ($116bn; £72bn) stimulus package to shore up its flagging economy.
A convincing election win by Shinzo Abe and his Liberal Democratic Party(LDP) boosted Japanese equities and caused the yen to weaken.
Asian equity boutique Coupland Cardiff is set to add a Japanese income fund to its range in the New Year.
Aberdeen Asset Management's Hugh Young said dotcom-style bubbles are forming in some Asian income stocks as valuations look increasingly stretched.
Fidelity's Anthony Bolton has predicted a turnaround in China next year as the economic cycle shifts in the country's favour.
Panic about house prices, asset bubbles and China caught our readers' attention this year, with the views of leading hedgies and controversial industry figures featuring in our list of the 20 most read stories of 2012.