The fact that this is beginning to change—Chinese individual investors are piling headlong into Japanese shares as their own market flags—is both a sign of the times and a big hint as to why Japanese stocks are suddenly doing so well in general. Foreign investors who previously parked a lot of cash in China need somewhere else for their international allocations. A lot of Chinese domestic capital is eyeing the exits too: And Japan is cheaper than the U.S. and, potentially, comes with less political and regulatory risk. You’re reading a premium article

Source: Wall Street Journal January 23, 2024 09:46 UTC