Heartwood's Stanes: Japan's growth on the up despite misplaced optimism on Abe's reform

Japanese equity indices were among the strongest-performing developed markets in 2017 (the MSCI Japan returned 20% in local currency terms). This robust performance came despite a near 5% appreciation of the yen versus the US dollar.

But it was the re-election of Prime Minister Shinzo Abe last October that seems to have been one of the catalysts for Japan's equity market rally taking hold, led by the stellar performance of smaller companies. Abe's convincing win drove hopes that a new and emboldened mandate would help to secure long-needed structural reforms.  While this optimism may well turn out to be misguided, Japan's election also came at a time of rising global economic momentum, which continues to benefit near-term domestic prospects. Industry Voice: Abe's Corporate Governance Reforms Unleash Japan's Potent...