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Prime Minister Shinzo Abe is back and so, it appears, is Japan. The yen is down, the Nikkei up, and approval ratings and expectations for the new government are sky high.

“Abenomics” is the new buzzword in and outside of Japan as unprecedented optimism weakens the perception that Japan will never overcome stagnation or its slow decline. Restaurants in Tokyo are brimming with customers who are running up sales of luxury goods, while occupancy rates at five-star hotels hit record highs in March. Even CEOs of foreign multinationals are flocking back to Japan, eager not to miss the potential revival of Asia’s former heavyweight.

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