INVESTOR interest in Japanese equities is at its highest in several decades, thanks to improving economic fundamentals. In spite of already high valuations, many analysts continue to see upside for the country’s stock market.

Foreigners put a net US$31.8 billion into Japanese equities in the year to Jun 2.

This is the highest – on a cumulative year-to-date basis – since 2013, when Japan’s then prime minister Shinzo Abe launched his “Abenomics” economic programme, NatWest Markets emerging markets strategist Galvin Chia said.