China’s economic troubles have so far been a boon to other Asian markets. That is in contrast to Chinese stocks: the MSCI China index has dropped 6%, despite a strong start of the year. There are some fundamental reasons why Asian stocks outside of China have gone up. The hope of an eventual rebound in the semiconductor industry has lifted stocks in Taiwan and South Korea. But these markets also benefited from foreign investors fleeing Chinese stocks: markets such as Japan and South Korea have seen foreign inflows in recent months.

Source: Wall Street Journal September 02, 2023 21:17 UTC