What can we expect from Japan in 2018?

Japanese equity markets have been tested by global market volatility so far this year.

But we believe that strong global demand, improving domestic growth and political stability will remain supportive of Japanese companies' multi-year growth trajectory.  Japan's TOPIX index has been the best-performing developed market since Abenomics began in 2012, and with at least 10% earnings growth forecast for 2018, this strong performance trend looks set to continue. The robust and improving global economic backdrop could be particularly beneficial for the earnings of Japanese exporters; we expect strong global demand to potentially be the single largest driver of earnings growt...