- Earnings growth looks set to hit 12 per cent
- Private buyouts on the rise
Few commentators would have bet on Japan being a stand-out equity performer on any level at the start of the year, as the country grappled with the long tail of the pandemic and impact of Russia’s war in Ukraine.
Add in ongoing tensions with a resurgent China and many investors would have been forgiven for giving the country’s equities a wide berth. What many may have missed is that a decent bout of inflation is exactly what Japan’s economy needed to throw off its torpor. A tougher operating environment in China for Western players also helped shift funds into Japanese IPOs and equity raises.