“We expect the Bank of Japan (BoJ) to remain accommodative, however any changes could lead to yen appreciation and further undercut export growth,” according to BlackRock.

One of the primary reasons some analysts cite for embracing Japanese stocks is lower valuations.

“Japanese equities are already cheap relative to history, but 2019 earnings growth expectations are weak (4%) and economic risks look skewed to the downside,” said BlackRock.

For more information on the Japanese markets, visit our Japan category.

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