Euphoria In Japan At Risk With Sky-High Valuations

By Hideyuki Sano, Bloomberg Markets Live reporter and strategist

Valuations in Japanese stocks are the highest in decades as a “Buy Japan” rally took off after Prime Minister Sanae Takaichi’s decisive election victory, leading investors to question how much upside remains.

The Topix now trades around 18 times expected earnings for the next 12 months.