Japan’s equity sun rises

Optimism about Japanese economy and stock market is gaining strength.

This September the IMF forecast that the Japanese economy would grow by 2% this year and by as much again in 2006, which would make 2003-06 the country’s best period of growth since the economy began stagnating in 1990.

Foreign investors have also started to pay attention. Japan equity funds have attracted a net $1.5 billion in inflows since the end of July, according to Emerging Portfolio Funds Research, a fund flows tracker. Data from State Street also show near record inflows.

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