From Asia Financial:

Global investors are turning to Japan’s booming markets as they steer clear of Chinese equities due to political concerns. Heavyweights like Tokyo Electron and Fast Retailing have seen significant gains, with Japanese firms with ties to China proving more politically palatable options. Japan’s Nikkei index has hit all-time highs.

China and Japan’s economies are at starkly different points, with Japan’s Nikkei hitting highs not seen in decades while China’s CSI300 index struggles. Japanese funds are seeing inflows while Chinese offshore funds are experiencing outflows. Japanese companies with strong ties to China are benefiting, but caution remains as Chinese market troubles persist.

Despite risks, Japan’s Nikkei continues to rise, driven by chip-sector giants and other heavyweights. Companies like Recruit Holdings and Toyota Motor have seen strong gains, but those reliant on the Chinese market have faced challenges. Analysts see corporate governance reforms and earnings as key drivers for future investment in Japan.



Read more at Asia Financial: China-Wary Investors ‘Icing on Cake’ for Japan’s Nikkei