Will expectations of Japan's corporate performance be ratcheted up?

Growth, trade and geopolitics have left the equity markets struggling to gain traction lately. Japan is no exception, with the market facing a strengthening yen as investors seek out perceived 'safe havens'.

Japan bulls are focused on corporate performance. Japanese large caps (excluding financials) forecast recurring profit growth for this fiscal year of low single-digits (year on year), but this uninspiring figure was undermined by specific sectors such as carmakers and construction, leaving room for expectations guidance to be ratcheted back up later. Indeed, as of 1 June, Nomura Securities issued an estimate for 2018 earnings growth of more than 8%.  Ruffer: The 'intensely interesting' opportunity in Japan If buoyant earnings are enticing, so are valuations. Japan's forward P/E (15.6)...