Abenomics: how Japan's new PM is driving the rally

An overvalued yen exchange rate since the outbreak of the financial crisis in 2008, as well as a series of natural disasters, led to a sharp decline in both domestic demand and the Japanese share of global exports. During the last three months, however, the only thing going up faster than the Japanese equity market has been the popularity of the new Japanese prime minister, Mr Shinzo Abe. Japan and its stock market have some catching up to do and, if Prime Minister Abe gets his way, this is about to happen. Expectations for the new government are sky high, with the yen depreciating...