Japan’s Fading Rally Drives Some Investors to Cheap China Shares
- Heavy positioning by global funds poses risk for Japan shares
- There are many opportunities in the Chinese market, M&G says
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Japanese stocks have trounced their Chinese peers this year, but some investors are betting the tide is about to turn.
Headwinds are growing for Japanese equities including deteriorating global growth and concern the era of yen weakness that has bolstered exporters’ earnings may be nearly over as the central bank comes under pressure to tighten policy.