Will the Nikkei continue to outperform?

The Nikkei is near its highest in 25 years, buoyed by a 200% rise in net profits since PM Abe returned to power five years ago. Looking ahead, we expect the yen to weaken to 120 by the end of next year. With this backdrop, even though Japanese stocks are no longer cheap relative to US stocks, we think that they will continue to outperform their US counterparts.

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