Fidelity's Price: Where are Japan's mis-priced assets?

Japan has been struggling with next to no growth and fighting deflation for more than 20 years, leading to huge monetary and fiscal stimulus and structural reforms, from the 'three arrows' of Abenomics to the central bank's purchase of enormous swathes of the government bond market.

But so far, despite these efforts, inflation is far below the 2% target, GDP grow is sluggish, and the country is facing a demographic challenge as its population ages.   Then there is the recent impact of the strong yen. When the yen appreciates sharply, this is bad news for Japan's corporate earnings, exports more broadly, and domestic inflation. Can the rally in Japanese equities continue? Although Japan has limited exposure to the UK, the market volatility seen in the aftermath of the vote for an EU exit pushed many investors in to safe haven assets such as gold and the yen.  ...