According to a Goldman Sachs report, foreign investors bought more Japanese equities than Chinese equities for the first time since 2017 in the first half of this year. In comparison, long-only managers have continued to sell stocks in China and Hong Kong, while buying shares in Japan, as highlighted by strategists at Morgan Stanley.
The shift in favor of Japan can be attributed to global funds investing in a market that was once overlooked due to concerns about lackluster earnings growth. Even after the Bank of Japan adjusted its accommodative stance, optimism remains high among investors seeking alternatives to Chinese equities. This is due to skepticism regarding the effectiveness of Beijing’s efforts to support its faltering economy.
Japan income fund, JPMorgan Japan Small Cap Growth & Income (LONJSGI), targets Japan income without compromising on Japanese growth opportunities. This Japan income investing opportunity gives investors access to a diverse and fast growing sector managed by local managers.