Company profits recovering in Japan

The Japanese economy has sprung out of the doldrums with an impressive 15% stock market return this year. Although the Japanese economy is still in its early stages of recovery companies have begun to restructure and corporate profits have shown signs of recovery. The deflation threat is receding, consumer confidence is recovering and there are signs that both the political and the banking systems are improving. However, the economy continues to be negatively affected by the strength of the yen. Nick Reid, senior investment manager at Gartmore, says: "Japan has been in a bear marke...