Improved engagement
Underperformed other developed markets
So far this year, we have seen Japan's equity market rising on the back of a supportive global backdrop, a relatively stable currency and healthy corporate earnings growth.
In the years prior to 1997, the countries known as the Asian tigers (Indonesia, South Korea, Malaysia and Thailand) experienced extraordinary economic performance along with macroeconomic stability.
Valuations attractive
Japan (Topix) is doing well this year in US dollar terms, up 12% compared to 11% for the S&P 500 and 13% for the MSCI World index.
Three macro trends should shape the Japanese economy over the next couple of years.