Skepticism abounds over whether Japan's long-promised economic reforms will ever materialize, but some analysts still expect the country's stock market rally can continue.
"Structural reforms are the big challenge in Japan. The market is still waiting for more convincing evidence that structural reform will attain more substantial progress," Fan Cheuk Wan, chief investment officer for Asia Pacific at Credit Suisse private banking, told CNBC.
But she still expects shares to rally over the next six to 12 months. "We still believe the cyclical upswing in the economy is going to support further valuation expansion of the market," she said.
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Investors pushed Japanese shares up more than 50 percent last year on hopes hope that Abenomics, or the around one-year-old plan from Japanese Prime Minister Shinzo Abe, will kick-start Japan's long-moribund economy out of its decades-long struggle against the pressures of deflation.
But while the "first arrow" of aggressive easing from the Bank of Japan and the "second arrow" of ambitious spending from the government have come through, the "third arrow" of structural reforms remain elusive.