No resting on laurels for Japanese stars

Ignoring the political stalemate, Japan's best companies have got on with the job of restructuring and stripping out costs in recent years, which means prices for Japanese stocks are now at their best levels for 30 years, says Stephen Mitchell, head of japanese equities at JPMorgan Fleming . Forward price/earnings ratios are down to 20x on average - similar to prices paid in the West - because firms have been boosting profit margins faster than sales have grown. Along with the improvements in profit margins has come improved cashflow, meaning companies can afford to step up ca...