Japan back in favour as risk appetite rises

Optimism on the Japanese economy and earnings have picked up since November, while global risk appetite has risen strongly, according to Bank of America Merrill Lynch's fund manager survey for January. A net 63% of the regional respondents expect a stronger Japanese economy in 2010, up from 30% in November. A net 87% expect improved earnings, up from 59% in November. Global respondents identified Japanese equities as the most undervalued in the world and, over the past two months, J…