Japan is back. Abenomics may not have fully delivered on its much vaunted promises, but the Japanese economic growth engine is steadily springing to life. Strong deflation pressures appear to have been consigned to the past, while the dual tailwinds of increased business confidence and consumer sentiment are boosting domestic Japanese business growth.
As the economic environment improves, asset allocators and investors are beginning to shift their focus again to Japan where valuations look increasingly attractive. Against this improving backdrop, on both a macro and fundamental level, I see five key reasons why investors should reassess portfolio exposure to the country.