World’s Highest Stock Valuations Signal Japanese Recovery

From bloomberg.com

Japan’s stock market, hobbled by more than a decade of deflation, is showing companies will stage a full earnings recovery from the worst nuclear crisis since Chernobyl, pricing in the biggest rise in profits compared with other countries since 2001. Income in the Nikkei 225 Stock Average (NKY) will rise by 69 percent in 2012, after plunging 31 percent last year, according to more than 2,600 analyst estimates compiled by Bloomberg. At 24.5 times reported earnings, Japanese equities are the most expensive among the world’s 60 biggest markets, trading so high that only by meeting analysts’ forecasts will ... (full story)