Abe brings hope for Japanese equity revival

Not for the first time, analysts are predicting that Japan’s stock market will shake off its long underperfomance.
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Shinzo Abe became Japan's new prime minister on December 26
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<div style="text-align: left;"> Shinzo Abe became Japan's new prime minister on December 26 </div>

Japanese equities could be set for a change in fortunes after the Liberal Democratic Party’s election in December.

The country’s stock market has rallied strongly since mid-November on expectations of the change in government, leading the Topix to end the year with an 18% gain the first time Japan has outperformed global equities in seven years.

Investors are also optimistic about the appointment of a new central bank governor in April and a consumption tax hike in the autumn, as well as other positive trends.

“We think Japanese equities will break out of long years of undervaluation in 2013,” said Nomura in a bullish...

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