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The doomsayers may have latched on to Japan's lurch into recession, but the country's deepest post-war contraction is easing. Industrial output surged the most in 56 years in April amid a rebound in exports, with production rising 5.2 per cent from March and representing the second monthly gain.

Moreover, the increase was faster than the 3.3 per cent economists had been expecting. Additionally, the economy shrank less than previously thought in the first three months of the year.

Investors have already become more upbeat about the direction of the economy – the Nikkei index of leading Japanese shares recently closed above 10,000 points for the first time in eight months. And unlike many markets, the Japanese one is largely driven by its domestic investors.

Visiting a country can give a better sense of the political lie of the land. Parliamentary elections have to be held before September 10, with the prospect of a Democratic Party victory ending more than 50 years of almost unbroken rule from the Liberal Democratic Party (LDP).

A serious defeat of the LDP could break the grip of the bureaucracy of the Ministry of Finance, which some might argue has not always acted in the country's best interest. Some wishful thinkers believe political change could herald a period of transformation, in particular, one of privatisations - and unlike some countries I could name, Japan has some highly burnished family silver to sell.

In a blow to beleaguered prime minister Taro Aso ahead of the looming election, the internal affairs minister has resigned in a row about the management of Japan Post.

Kunio Hatoyama, the third cabinet minister to step down since Mr Aso became premier in September, quit because of a dispute about the reappointment of the head of the government-owned corporation, arguing that the latter's management was sloppy.

In making the case for Japan, it is worth remembering Japan is the ultimate cyclical trade and one that many will look to pile into once those green shoots of recovery become positively luxuriant, thereby missing the best of the recovery.

And Japanese companies - which often restructure more than the popular perception - will have been quietly preparing for that day.

Tony Lanning is head of multi-manager at Gartmore Investment Management